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If the price of a commodity is decreased...

If the price of a commodity is decreased by 20% and its consumption is increased by 20%, what will be the increase or de crease in the expenditure on the commodity?

A

4 % increase

B

4 % decrease

C

8 % decrease

D

8% increase

Text Solution

Verified by Experts

The correct Answer is:
B
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Knowledge Check

  • If the price of a commodity is decreased by 10% and its consumption is increased by 20%, then what will be the increase or decrease in the expenditure of the commodity?

    A
    8% decrease
    B
    8% increase
    C
    10% increase
    D
    10% decrease

  • If the price of a commodity is decreased by 40% and its consumption is increased by 20% , then what will be the increase or decrease in the expenditure of the commodity?

    A
    `28%` decrease
    B
    `28%` increase
    C
    `20%` increase
    D
    `20%` decrease

  • If the price of a commodity is de creased by 10% and its con sumption is increased by 20%, then what will be the increase or decrease in the expenditure of the commodity?

    A
    8% decrease
    B
    8% Increase
    C
    10% Increase
    D
    10% decrease

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