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Price, Consumption & Expenditure

CP & SP related Questions

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548 views2 pages

Price, Consumption & Expenditure

CP & SP related Questions

Uploaded by

akashmukherjee309
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
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PRICE , CONSUMPTION & EXPENDITURE

related problems Questions Compiled by


ANKUR MUKHERJEE

★ Price, Consumption and Expenditure

(i) The relationship among changes in these three variables is given by the same general
expression given above i.e.;

Net % change in expenditure =

[x+y+ xy/100]%

Where,
x: % change in the price of commodity consumed
y: % change in the consumption of the commodity.
(ii) If the price of a commodity increases by x%, then reduction in consumption so as not to in-
crease the expenditure, is

[x/(100 + x) X 100]%

If the price decreases by x%, then increase in consumption so as not to increase expenditure, is

[x/(100 - x) X 100]%

★ If price of an article is increased by r%, the % decrease now required to restore its original price is:

= [100/(1 + 100/r)]%

If the price is first decreased by r% and then increased to restore the price, the required % increase

= [100/(100/r - 1)] %

Problems based on this topic:-


1. When prices rise by 12%, if the expenditure is to be same, what is the percentage of
consumption to be reduced?
(a) 16 2/3% (b) 10 2/7% (c) 16 3/5% (d) 10 5/7% (e) 15 2/7%

2. The price of rice is increased by 20 percent and a person decrease his consumption by 15
percent, so his expenditure on rice is-
(a) increase by 2 percent
(b) increase by 4 percent
(c) decrease by 2 percent
(d) decrease by 4 percent
(e) None of these
3. If the price of an article is increased by 15%, then by how much the household should decrease
their consumption so as to keep his expenditure same?
(a) 13(1/23)% (b) 13(2/23)% (c) 11(1/23)% (d) 11(2/23)% (e) None of these

4. The price of an item is reduced by 10%. How much will its price have to be increased to bring it
back to its old price?
(a) 10% (b) 11% (c) 9(1/11) % (d) 11(1/9) % (e) None of these

5. If the price of sugar is increased by 20%, how much percent of consumption should be
decreased so that total expenditure remains the same?
(a) 25% (b) 45/2% (c) 50/3% (d) 35/4% (e) None of these

6. In a year, the prices of commodity A increased by 24% whereas his consumption increased by
25%. What is the percentage increase in his expenditure?
(a) 36% (b) 40% (c) 55% (d) 64% (e) None of these

7. A number if reduced by 20% becomes 228. By what percent should it be increased so that it
becomes 313.5?
(a) 10% (b) 8% (c) 12% (d) 15% (e) None of these

8. If the price of a product is increased in the ratio 5:6 and the consumption of that product also
increases in the ratio 8: 11, then find the percentage increment in the expenditure done on that
product.
(a) 48% (b) 65% (c) 54% (d) 56% (e) None of these

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