The price of a commodity is increased by 5% in India. The consumption of same was increased from 400 tons to 480 tons. By how much percentage will the expenditure on the article rise in Indian economy?28%26%25%27%
Question
The price of a commodity is increased by 5% in India. The consumption of same was increased from 400 tons to 480 tons. By how much percentage will the expenditure on the article rise in Indian economy?28%26%25%27%
Solution
To solve this problem, we need to calculate the percentage increase in expenditure.
Step 1: Calculate the new price of the commodity after the 5% increase. If the original price was 100 (for simplicity), the new price would be 105 (100 + 5% of 100).
Step 2: Calculate the total expenditure before and after the increase in consumption and price.
Before: Price x Consumption = 100 x 400 = 40,000 After: New Price x New Consumption = 105 x 480 = 50,400
Step 3: Calculate the percentage increase in expenditure.
Percentage Increase = [(New Expenditure - Old Expenditure) / Old Expenditure] x 100 Percentage Increase = [(50,400 - 40,000) / 40,000] x 100 = 26%
So, the expenditure on the article will rise by 26% in the Indian economy.
Similar Questions
he price of a certain food items was raised by 12% in market. The consumption of the same food items was decreased from 250 kgs to 200 kgs. By how much percent will expenditure on food item fall in the market?
The cost of Jowar increased by 12%. How much percent its consumption also be increased such that the expenditure on it’s raised by 40%.
The cost of wheat reduced by 28%. How much percent its consumption increased such that the expenditure increases by 8%.
As a result of a 25% hike in the price of rice per kg, a person is able to purchase 6 kg less rice for Rs 1,200. What was the original price of rice per kg? (UPSC 2020)
A trader buys 800 kgs of tomatoes for Rs 7200. 10% tomatoes are damaged in transportation. At what rate (Rs/Kg) should he sell the rest to earn 30% profit?
Upgrade your grade with Knowee
Get personalized homework help. Review tough concepts in more detail, or go deeper into your topic by exploring other relevant questions.