The strain in the direction of pull is
e1 = \(\frac pm\) = \(\frac p{AE}\) = \(\frac{20000}{20\times10\times0.2\times10^6}\) = 5 x 10-4
Lateral strain = - \(\frac{e_1}m\) = - \(\frac3{10}\) x 5 x 10-4
Hence 20 mm side is decreased by 20 x 1.5 x 10-4 = 0.0030 mm
10 mm side is decreased by 10 x 1.5 x 10-4 = 0.0015 mm
New area of cross section = (20 - 0.003)(10 - 0.0015) = ( 200 - 0.06)
\(\therefore\) % decrease of area of cross section = \(\frac{0.06}{200}\) x 100 = 0.03