Question

The shopkeeper increase the price of product by 25% so that customer finds it difficult to purchase the required amount but somehow the customer manage to purchase only 70%. What is the net difference in the expenditure on that product?​

Answer 1

Step-by-step explanation:

Let initially the quantity and rate be 100 each.

Quantity*rate = Expenditure

100*100 = 10000

Now, Increase in price is 25% and new quantity is 70% of original.

Quantity*rate = Expenditure

70*125 = 8750

Decreased expenditure,

= 10000-8750 = 1250

% decrease,

= (1250*100)/10000

= 12.5%.