Question

When the price of the product was decreased by 10% the number sold increase by 30% what will be total revenue

Answer 1

Let’s assume the price of Product = x

and the number of product sell = y

Total Revenue in this case = xy

Now,

the price decreases by 10%, the new price =x-10% of x= x−0.1x=0.9x

and the number of sells increased by 30%, now the total number of cells = y+30% of y

=y+0.3y=1.3y

In this case the total revenue = 0.9x⋅1.3y=1.17xy

So the final revenue is increased by 1.17%.