Question
The price of a product is increased by 20%, and a person
decreases his consumption by 10%. Find the percentage increase or decrease in his expenditure.Solution
ATQ,
Let the original amount of the product bought by the person be ‘x’ units and the price of that product be Rs. ‘y’ per unit.
Initial expenditure = Rs. xy
New increased price = Rs. 1.20y
New decreased consumption = 0.90x
New expenditure = 1.20y × 0.90x = Rs. 1.08xy
Hence, the expenditure increases by 8%.
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