Question

A jersey manufacturer increases the price of a jersey by 24%. At max by what percent the reduction in the volume
his sales can go, so that the manufacturer's sales revenue remain equal to the original sales revenue?​

Answer 1

Step-by-step explanation:

19.35% ans

p = price

q= quantity

revenue = p*q

now, price hiked 24/100

then quantity lose 24/(24+100) = 24/124 = 6/31

make it % = 6/31*100 = 19.35%

Answer 2

Given:

Increase in price of jersey by 24%

To Find:

Percentage reduction in volume.

Solution:

Let us take the price of the jersey to be 100, then the ratio of the original price and the increased price will be,

Original price: Increased price

                100:124                       (24% of 100 is 124)

                  25:31

As the quantity is inversely proportional to the price,

Therefore the ratio of volume will be

Original volume: Increased volume

                        31:25  

Now percentage reduction will be

=$\frac{(31-25)}{31}$×100

=19.35%

Hence the percentage reduction in volume is 19.35%.