administrators Reply Quote

Answer : 2 decrease 12% Explanation : Answer: B) decrease 12% Explanation: Given the price of a commodity is decreased by  p = 20%And its consumption is increased by q = 10%Now, required increase or decrease in the expenditure on the commodity can be p q pq/100 = -20 10 - 200/100 = -10 - 2 = -12%. Hence, decrease in the expenditure = 12%

Click here to see the full blog post