Question

The price of the maruti car rises by 30% while the sales of the car comes down by 20% what is the percentage change in total Revenue

Answer 1

Answer:

Let initial price of Maruti Car be Rs. 100.

As price increases 30%, price of car will become, 100+30=Rs.130.

Due to increase in price, sales goes down by 20%

It means, it is going to make 20% less revenue, as expected after increment of price.

So, New revenue =130−130×

100

20

=130−26=104 Rs .

The initial revenue was Rs. 100 which becomes Rs. 104 at the end.

It means there is 4% increment in the total revenue.