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The price of a commodity increases from Rs. 5 per unit in 1990 to Rs. 7.50 per unit in 1995 and the quantity consumed decreases from 120 units in 1990 to 90 units in 1995. The price and quantity in 1995 are 150% and 75% respectively of the corresponding price and quantity in 1990. Therefore, the product of the price ratio and quantity ratio is:
- a)1.8
- b)1.125
- c)1.75
- d)None of these
Correct answer is option 'B'. Can you explain this answer?
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Most Upvoted Answer
The price of a commodity increases from Rs. 5 per unit in 1990 to Rs. ...
Given data:
Price in 1990 = Rs. 5 per unit
Price in 1995 = Rs. 7.50 per unit
Quantity in 1990 = 120 units
Quantity in 1995 = 90 units
Price ratio = (Price in 1995 / Price in 1990) * 100%
= (7.50 / 5) * 100%
= 150%
Quantity ratio = (Quantity in 1995 / Quantity in 1990) * 100%
= (90 / 120) * 100%
= 75%
Product of price ratio and quantity ratio = (150% * 75%) / 100%
= 1.125
Therefore, the correct answer is option B) 1.125.
Explanation:
In 1990, the price of the commodity was Rs. 5 per unit and the quantity consumed was 120 units. In 1995, the price increased to Rs. 7.50 per unit and the quantity consumed decreased to 90 units. This means that there was an increase in price and a decrease in quantity consumed over the time period of 1990 to 1995. To calculate the price ratio and quantity ratio, we divide the values of 1995 by the values of 1990 and multiply by 100% to get the percentage increase or decrease. The product of the price ratio and quantity ratio gives us the overall change in the commodity over the time period of 1990 to 1995. In this case, the product is 1.125, which means that there was an overall decrease in the commodity of 12.5%.
Price in 1990 = Rs. 5 per unit
Price in 1995 = Rs. 7.50 per unit
Quantity in 1990 = 120 units
Quantity in 1995 = 90 units
Price ratio = (Price in 1995 / Price in 1990) * 100%
= (7.50 / 5) * 100%
= 150%
Quantity ratio = (Quantity in 1995 / Quantity in 1990) * 100%
= (90 / 120) * 100%
= 75%
Product of price ratio and quantity ratio = (150% * 75%) / 100%
= 1.125
Therefore, the correct answer is option B) 1.125.
Explanation:
In 1990, the price of the commodity was Rs. 5 per unit and the quantity consumed was 120 units. In 1995, the price increased to Rs. 7.50 per unit and the quantity consumed decreased to 90 units. This means that there was an increase in price and a decrease in quantity consumed over the time period of 1990 to 1995. To calculate the price ratio and quantity ratio, we divide the values of 1995 by the values of 1990 and multiply by 100% to get the percentage increase or decrease. The product of the price ratio and quantity ratio gives us the overall change in the commodity over the time period of 1990 to 1995. In this case, the product is 1.125, which means that there was an overall decrease in the commodity of 12.5%.
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The price of a commodity increases from Rs. 5 per unit in 1990 to Rs. ...
1.125
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The price of a commodity increases from Rs. 5 per unit in 1990 to Rs. 7.50 per unit in 1995 and the quantity consumed decreases from 120 units in 1990 to 90 units in 1995. The price and quantity in 1995 are 150% and 75% respectively of the corresponding price and quantity in 1990. Therefore, the product of the price ratio and quantity ratio is:a)1.8b)1.125c)1.75d)None of theseCorrect answer is option 'B'. Can you explain this answer?
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The price of a commodity increases from Rs. 5 per unit in 1990 to Rs. 7.50 per unit in 1995 and the quantity consumed decreases from 120 units in 1990 to 90 units in 1995. The price and quantity in 1995 are 150% and 75% respectively of the corresponding price and quantity in 1990. Therefore, the product of the price ratio and quantity ratio is:a)1.8b)1.125c)1.75d)None of theseCorrect answer is option 'B'. Can you explain this answer? for CA Foundation 2024 is part of CA Foundation preparation. The Question and answers have been prepared according to the CA Foundation exam syllabus. Information about The price of a commodity increases from Rs. 5 per unit in 1990 to Rs. 7.50 per unit in 1995 and the quantity consumed decreases from 120 units in 1990 to 90 units in 1995. The price and quantity in 1995 are 150% and 75% respectively of the corresponding price and quantity in 1990. Therefore, the product of the price ratio and quantity ratio is:a)1.8b)1.125c)1.75d)None of theseCorrect answer is option 'B'. Can you explain this answer? covers all topics & solutions for CA Foundation 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for The price of a commodity increases from Rs. 5 per unit in 1990 to Rs. 7.50 per unit in 1995 and the quantity consumed decreases from 120 units in 1990 to 90 units in 1995. The price and quantity in 1995 are 150% and 75% respectively of the corresponding price and quantity in 1990. Therefore, the product of the price ratio and quantity ratio is:a)1.8b)1.125c)1.75d)None of theseCorrect answer is option 'B'. Can you explain this answer?.
The price of a commodity increases from Rs. 5 per unit in 1990 to Rs. 7.50 per unit in 1995 and the quantity consumed decreases from 120 units in 1990 to 90 units in 1995. The price and quantity in 1995 are 150% and 75% respectively of the corresponding price and quantity in 1990. Therefore, the product of the price ratio and quantity ratio is:a)1.8b)1.125c)1.75d)None of theseCorrect answer is option 'B'. Can you explain this answer? for CA Foundation 2024 is part of CA Foundation preparation. The Question and answers have been prepared according to the CA Foundation exam syllabus. Information about The price of a commodity increases from Rs. 5 per unit in 1990 to Rs. 7.50 per unit in 1995 and the quantity consumed decreases from 120 units in 1990 to 90 units in 1995. The price and quantity in 1995 are 150% and 75% respectively of the corresponding price and quantity in 1990. Therefore, the product of the price ratio and quantity ratio is:a)1.8b)1.125c)1.75d)None of theseCorrect answer is option 'B'. Can you explain this answer? covers all topics & solutions for CA Foundation 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for The price of a commodity increases from Rs. 5 per unit in 1990 to Rs. 7.50 per unit in 1995 and the quantity consumed decreases from 120 units in 1990 to 90 units in 1995. The price and quantity in 1995 are 150% and 75% respectively of the corresponding price and quantity in 1990. Therefore, the product of the price ratio and quantity ratio is:a)1.8b)1.125c)1.75d)None of theseCorrect answer is option 'B'. Can you explain this answer?.
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