Question

The Price of a certain article was raised by 10% in India. The consumption of the same article was increased from 200 tones to 225 tones. By how much percent will the expenditure on the article rise in the Indian economy?

Answer 1

Answer:

23.75

Step-by-step explanation:

Given  

The Price of a certain article was raised by 10% in India. The consumption of the same article was increased from 200 tones to 225 tones. By how much

percent will the expenditure on the article rise in the Indian economy?

Let the initial price be 100

So expenditure = price x consumption

                         = 100 x 200

                        = 20,000

Now price of article was increased by 10 %

So the new price will be 110

Now new consumption is 225

So new expenditure will be 110 x 225 = 24,750

Therefore change in expenditure = 24,750 – 20,000

                                                       = 4,750 / 20,000 x 100

                                                         = 23.75%

Answer 2

Answer:

Increase in consumption = 25/200 X 100 = 12.5

Using Successive percentage change, (A+B+ AxB/100)

Req percentage change = (12.5 + 10 + 12.5x10/100)%= 23.75%