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When price is Rs. 20, Quantity demand is 10 units and price is decreased by 5% then quantity demand increased by 10% then Marginal revenue is (a) Rs. 10 (c) Rs. 9 (b) Rs. 11 (d) Rs. 20?
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When price is Rs. 20, Quantity demand is 10 units and price is decreas...
Given Information:
Price (P) = Rs. 20
Quantity demand (Q) = 10 units
Price decreased by 5%
Quantity demand increased by 10%
To find:
Marginal Revenue (MR)
Solution:
First, we need to find the new price and quantity demand after the given changes.
New Price = 20 - (5% of 20) = Rs. 19
New Quantity Demand = 10 + (10% of 10) = 11 units
Now, we can calculate the Marginal Revenue using the formula:
MR = (Change in Total Revenue) / (Change in Quantity)
To use this formula, we need to calculate the Total Revenue for both the initial and new situations.
Initial Situation:
Price (P) = Rs. 20
Quantity demand (Q) = 10 units
Total Revenue (TR) = P x Q = 20 x 10 = Rs. 200
New Situation:
Price (P) = Rs. 19
Quantity demand (Q) = 11 units
Total Revenue (TR) = P x Q = 19 x 11 = Rs. 209
Now, we can calculate the Change in Total Revenue and Change in Quantity as follows:
Change in Total Revenue = New TR - Initial TR = 209 - 200 = Rs. 9
Change in Quantity = New Q - Initial Q = 11 - 10 = 1 unit
Finally, we can calculate the Marginal Revenue using the formula:
MR = Change in Total Revenue / Change in Quantity = 9 / 1 = Rs. 9
Therefore, the Marginal Revenue is Rs. 9.
Answer: (c) Rs. 9
Price (P) = Rs. 20
Quantity demand (Q) = 10 units
Price decreased by 5%
Quantity demand increased by 10%
To find:
Marginal Revenue (MR)
Solution:
First, we need to find the new price and quantity demand after the given changes.
New Price = 20 - (5% of 20) = Rs. 19
New Quantity Demand = 10 + (10% of 10) = 11 units
Now, we can calculate the Marginal Revenue using the formula:
MR = (Change in Total Revenue) / (Change in Quantity)
To use this formula, we need to calculate the Total Revenue for both the initial and new situations.
Initial Situation:
Price (P) = Rs. 20
Quantity demand (Q) = 10 units
Total Revenue (TR) = P x Q = 20 x 10 = Rs. 200
New Situation:
Price (P) = Rs. 19
Quantity demand (Q) = 11 units
Total Revenue (TR) = P x Q = 19 x 11 = Rs. 209
Now, we can calculate the Change in Total Revenue and Change in Quantity as follows:
Change in Total Revenue = New TR - Initial TR = 209 - 200 = Rs. 9
Change in Quantity = New Q - Initial Q = 11 - 10 = 1 unit
Finally, we can calculate the Marginal Revenue using the formula:
MR = Change in Total Revenue / Change in Quantity = 9 / 1 = Rs. 9
Therefore, the Marginal Revenue is Rs. 9.
Answer: (c) Rs. 9
Community Answer
When price is Rs. 20, Quantity demand is 10 units and price is decreas...
P=20 , P1=19. 20�5%=1 =20-1 =19 ( decrease)
Q=10 , Q1=11. 10�10% =1 = 10+1 =11(increase)
MR = P�Q /Q
= P1�Q1 - P�Q / Q1-Q
= 19�11 - 20�10/11-10
= ₹9
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When price is Rs. 20, Quantity demand is 10 units and price is decreased by 5% then quantity demand increased by 10% then Marginal revenue is (a) Rs. 10 (c) Rs. 9 (b) Rs. 11 (d) Rs. 20?
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When price is Rs. 20, Quantity demand is 10 units and price is decreased by 5% then quantity demand increased by 10% then Marginal revenue is (a) Rs. 10 (c) Rs. 9 (b) Rs. 11 (d) Rs. 20? 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 When price is Rs. 20, Quantity demand is 10 units and price is decreased by 5% then quantity demand increased by 10% then Marginal revenue is (a) Rs. 10 (c) Rs. 9 (b) Rs. 11 (d) Rs. 20? covers all topics & solutions for CA Foundation 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for When price is Rs. 20, Quantity demand is 10 units and price is decreased by 5% then quantity demand increased by 10% then Marginal revenue is (a) Rs. 10 (c) Rs. 9 (b) Rs. 11 (d) Rs. 20?.
When price is Rs. 20, Quantity demand is 10 units and price is decreased by 5% then quantity demand increased by 10% then Marginal revenue is (a) Rs. 10 (c) Rs. 9 (b) Rs. 11 (d) Rs. 20? 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 When price is Rs. 20, Quantity demand is 10 units and price is decreased by 5% then quantity demand increased by 10% then Marginal revenue is (a) Rs. 10 (c) Rs. 9 (b) Rs. 11 (d) Rs. 20? covers all topics & solutions for CA Foundation 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for When price is Rs. 20, Quantity demand is 10 units and price is decreased by 5% then quantity demand increased by 10% then Marginal revenue is (a) Rs. 10 (c) Rs. 9 (b) Rs. 11 (d) Rs. 20?.
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