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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 :?
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The price of a commodity increases from Rs. 5 per unit in 1990 to Rs. ...
Calculation

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 = Price ratio * Quantity ratio

= 150% * 75%

= 112.5%

Answer

The product of the price ratio and quantity ratio is 112.5%.

Explanation

Price ratio is the percentage change in price from 1990 to 1995. Quantity ratio is the percentage change in quantity consumed from 1990 to 1995. The product of the price ratio and quantity ratio gives the percentage change in total expenditure on the commodity from 1990 to 1995.

In this case, the price ratio is 150% and the quantity ratio is 75%. Therefore, the product of the two ratios is 112.5%. This means that the total expenditure on the commodity decreased by 12.5% from 1990 to 1995.
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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 :?
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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 :? 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 :? 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 :?.
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