Question

when the price of a product was decreased by 10% the number of products sold increased by 30% find the percentage increase in the total revenue​

Answer 1

Answer:

let x be price of the product and y be number of products sold. Total revenue before change R = xy. (1)

after changes, new price of product is 0.9x and new number of product is 1.3y

so total revenue after changes were imposed R' = 0.9x*1.3y = 1.17xy

change in revenue = { R' - R } (as R' > R)

= { 1.17xy - xy}

= 0.17 xy increase

% increase = (0.17xy*100)/xy = 17% increase