Question

If the price of a commodity is decreased by 30% and its consumption is increased by 10%, then what will be the percentage increase or decrease in the expenditure of the commodity?

• A. 23% increase
• B. 17% increase
• C. 17% decrease
• D. 23% decrease

Answer 1

Answer:

D. 23% decrease

Let the price of the commodity be A and consumption of the commodity be B Earlier expenditure = AB Expenditure now = 0.7A × 1.1B = 0.77AB expenditure decreased by 23%