Question

The price of product of a company increases by
10% and the turnover increases by 10%. What is
the change in quantity sold?
a. 10%
b. 8%
C. 20%
d. no change​

Answer 1

Answer:

d.no change

Step-by-step explanation:

Answer 2

There will be no change in the quantity of products sold.

Option D will be the correct answer.

How do find out the change in quantity sold?

Given that the turnover is increased by 10 % when the price increases by 10 %.

Let us consider that the price of the product is x and the quantity sold is n numbers. Then the turnover t will be given as,

$t = x\times n$

An increase in the price of the product is 10 % results in an increase in turnover by 10%. Hence the increased price is,

$x' = x+\dfrac{10}{100}\times x$

$x' = 1.1 x$

Hence new turnover will be,

$t'= x\times n + \dfrac {10}{100} \times x\times n$

$t'= 1.1\times x\times n$

The quantity sold can be calculated by dividing the new turnover by the increased price of the product. Thus, the new quantity of the product will be,

$n' = \dfrac {t'}{x'}$

$n' = \dfrac {1.1\times x\times n}{1.1\times x}$

$n' =n$

We can see that the quantity of the product sold remains unchanged.

Hence option D will be the correct answer, there will be no change in the quantity of product sold.

To know more about the price and quantity, follow the link given below.

https://brainly.com/question/13953486.