Join ExamsbookAnswer : 2. "decrease 12%"
If the price of a commodity is decreased by 20% and its consumption is increased by 10%, what will be the increase or decrease in the expenditure on the commodity?5
Q: If the price of a commodity is decreased by 20% and its consumption is increased by 10%, what will be the increase or decrease in the expenditure on the commodity?
- 1increase 12%false
- 2decrease 12%true
- 3increase 16%false
- 4decrease 16%false
- Show AnswerHide Answer
- Workspace
Answer : 2. "decrease 12%"
Explanation :
Answer: B) decrease 12% Explanation: Given the price of a commodity is decreased by p = 20% And its consumption is increased by q = 10% Now, required increase or decrease in the expenditure on the commodity can be p + q + pq/100 = -20 + 10 - 200/100 = -10 - 2 = -12%. Hence, decrease in the expenditure = 12%