Question: Who lives in Red house?
Explanation:
It is given that the four houses Blue, Green, Red and Yellow are located in a row, From (VIII) we get that the house in which Krishna lives is located between houses with persons earning salaries of Rs. 30,000 and Rs. 50,000.
∴ Two cases are possible:
Case 1: Krishna lives in the Green house.
Case 2: Krishna lives in the Red house.
Consider case 1: Krishna lives in the Green house.
From (I) we get that Paul lives between Som and Krishna.
∴ Som lives in the Yellow house and Paul lives in the Red house.
∴ Laxman lives in the Blue house.
From (VIII) we get that Krishna lives in the house which is located between houses with persons earning salaries of Rs. 30,000 and Rs. 50,000.
And from (III) we get that the person living in the Red house earns more than the person living in the Blue house.
∴ Paul earns Rs. 50,000 and Laxman earns Rs. 30,000.
From (VII) we get that the salary difference between Laxman and Som is Rs. 30,000 which is not possible in this case as the four given salaries are Rs. 30,000, Rs. 50,000, Rs. 80,000 and Rs. 1,10,000.
∴ Case 1 is not possible.
Consider case 2: Krishna lives in the Red house.
From (I) we get that Paul lives between Som and Krishna.
∴ Som lives in the Blue house and Paul lives in the Green house.
∴ Laxman lives in the Yellow house.
In condition (VIII) it is given that Krishna lives in the house located between houses with persons earning Rs. 30,000 and Rs. 50,000.
And from (IX) we get that the person living in the Yellow house is not earning lowest salary among the four persons.
∴ Laxman earns Rs. 50,000 and Paul earns Rs. 30,000.
From (III) we get that the person living in the Red house earns more than the person living in the Blue house.
∴ Krishna earns Rs. 1,10,000 and Som earns Rs. 80,000.
This case satisfies all the given conditions.
∴ Krishna lives in the Red house.
Hence, option (b).