Question

if the price of a commodity is increased by 20% and its consumption decrease by 10% find its final effect on expanditure

Answer 1

If the price of a commodity is decreased by 20% and its consumption is increased by 10%, what will be the increase or decrease in the expenditure on the commodity? p + q + pq/100 = -20 + 10 - 200/100 = -10 - 2 = -12%

Answer 2

*Answer:-

Let the initial expenditure on the commodity be Rs. 100.

Now, the price decreases by 20%,

Current Price = (100 - 20% of 100) = Rs. 80.

Same time due to decrements in price 20% consumption has been increased. So,

Current expenses on commodity = (80 + 20% of 80)= Rs. 96.

Here, the initial expenditure was Rs. 100 which became 96 at the end, it means there is 4% decrements in the expenditure of the commodity.

Mind Calculation Method:

100 === 20%↓(Decrements in Price) ===> 80 === 20%↑(Increment in Consumption) ===> 96.

Thus, there is a decrements of 4%