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A shopkeeper sells gel pen at Rs. 10 per pen. At this price he can sell 120 per month. After some time, he raises the price to Rs. 15 per pen. Following the price rise: • Only 60 pens were sold every month • The number of refills bought were down from 200 to 150. • The number of ink pen customers bought went up from 90 to 180 per month.?
Most Upvoted Answer
A shopkeeper sells gel pen at Rs. 10 per pen. At this price he can sel...
Solution:
Given data:
Price of gel pen = Rs. 10 per pen
Quantity sold at Rs. 10 per pen = 120 per month
New price of gel pen = Rs. 15 per pen
Quantity sold at Rs. 15 per pen = 60 per month
Refills bought at Rs. 10 per pen = 200 per month
Refills bought at Rs. 15 per pen = 150 per month
Ink pens bought at Rs. 10 per pen = 90 per month
Ink pens bought at Rs. 15 per pen = 180 per month
Effect of price rise on sales:
When the price of gel pen was raised from Rs. 10 to Rs. 15 per pen, the quantity sold decreased from 120 to 60 per month. This is because the higher price made the pens less affordable for some customers, and they either reduced their usage or switched to cheaper alternatives.
Effect of price rise on refill sales:
The number of refills bought decreased from 200 to 150 per month after the price rise. This is because the higher price of the pens made customers more careful about how they used them, and they tried to make the ink last longer by using refills.
Effect of price rise on ink pen sales:
The number of ink pens bought increased from 90 to 180 per month after the price rise. This is because some customers who found the higher price of gel pens too expensive switched to ink pens, which were cheaper but still provided a similar writing experience.
Conclusion:
In conclusion, the price rise of gel pens from Rs. 10 to Rs. 15 per pen had a significant impact on sales and customer behavior. While the quantity of gel pens sold decreased, the sales of refills and ink pens increased, indicating that customers were trying to find cheaper alternatives or ways to make their writing last longer.
Given data:
Price of gel pen = Rs. 10 per pen
Quantity sold at Rs. 10 per pen = 120 per month
New price of gel pen = Rs. 15 per pen
Quantity sold at Rs. 15 per pen = 60 per month
Refills bought at Rs. 10 per pen = 200 per month
Refills bought at Rs. 15 per pen = 150 per month
Ink pens bought at Rs. 10 per pen = 90 per month
Ink pens bought at Rs. 15 per pen = 180 per month
Effect of price rise on sales:
When the price of gel pen was raised from Rs. 10 to Rs. 15 per pen, the quantity sold decreased from 120 to 60 per month. This is because the higher price made the pens less affordable for some customers, and they either reduced their usage or switched to cheaper alternatives.
Effect of price rise on refill sales:
The number of refills bought decreased from 200 to 150 per month after the price rise. This is because the higher price of the pens made customers more careful about how they used them, and they tried to make the ink last longer by using refills.
Effect of price rise on ink pen sales:
The number of ink pens bought increased from 90 to 180 per month after the price rise. This is because some customers who found the higher price of gel pens too expensive switched to ink pens, which were cheaper but still provided a similar writing experience.
Conclusion:
In conclusion, the price rise of gel pens from Rs. 10 to Rs. 15 per pen had a significant impact on sales and customer behavior. While the quantity of gel pens sold decreased, the sales of refills and ink pens increased, indicating that customers were trying to find cheaper alternatives or ways to make their writing last longer.
Community Answer
A shopkeeper sells gel pen at Rs. 10 per pen. At this price he can sel...
The number of ink pen customers bought went up from 90 to 180 per month .
and cross elasticity is 1.66
and cross elasticity is 1.66
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A shopkeeper sells gel pen at Rs. 10 per pen. At this price he can sell 120 per month. After some time, he raises the price to Rs. 15 per pen. Following the price rise: • Only 60 pens were sold every month • The number of refills bought were down from 200 to 150. • The number of ink pen customers bought went up from 90 to 180 per month.?
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A shopkeeper sells gel pen at Rs. 10 per pen. At this price he can sell 120 per month. After some time, he raises the price to Rs. 15 per pen. Following the price rise: • Only 60 pens were sold every month • The number of refills bought were down from 200 to 150. • The number of ink pen customers bought went up from 90 to 180 per month.? 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 A shopkeeper sells gel pen at Rs. 10 per pen. At this price he can sell 120 per month. After some time, he raises the price to Rs. 15 per pen. Following the price rise: • Only 60 pens were sold every month • The number of refills bought were down from 200 to 150. • The number of ink pen customers bought went up from 90 to 180 per month.? covers all topics & solutions for CA Foundation 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for A shopkeeper sells gel pen at Rs. 10 per pen. At this price he can sell 120 per month. After some time, he raises the price to Rs. 15 per pen. Following the price rise: • Only 60 pens were sold every month • The number of refills bought were down from 200 to 150. • The number of ink pen customers bought went up from 90 to 180 per month.?.
A shopkeeper sells gel pen at Rs. 10 per pen. At this price he can sell 120 per month. After some time, he raises the price to Rs. 15 per pen. Following the price rise: • Only 60 pens were sold every month • The number of refills bought were down from 200 to 150. • The number of ink pen customers bought went up from 90 to 180 per month.? 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 A shopkeeper sells gel pen at Rs. 10 per pen. At this price he can sell 120 per month. After some time, he raises the price to Rs. 15 per pen. Following the price rise: • Only 60 pens were sold every month • The number of refills bought were down from 200 to 150. • The number of ink pen customers bought went up from 90 to 180 per month.? covers all topics & solutions for CA Foundation 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for A shopkeeper sells gel pen at Rs. 10 per pen. At this price he can sell 120 per month. After some time, he raises the price to Rs. 15 per pen. Following the price rise: • Only 60 pens were sold every month • The number of refills bought were down from 200 to 150. • The number of ink pen customers bought went up from 90 to 180 per month.?.
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A shopkeeper sells gel pen at Rs. 10 per pen. At this price he can sell 120 per month. After some time, he raises the price to Rs. 15 per pen. Following the price rise: • Only 60 pens were sold every month • The number of refills bought were down from 200 to 150. • The number of ink pen customers bought went up from 90 to 180 per month.?, a detailed solution for A shopkeeper sells gel pen at Rs. 10 per pen. At this price he can sell 120 per month. After some time, he raises the price to Rs. 15 per pen. Following the price rise: • Only 60 pens were sold every month • The number of refills bought were down from 200 to 150. • The number of ink pen customers bought went up from 90 to 180 per month.? has been provided alongside types of A shopkeeper sells gel pen at Rs. 10 per pen. At this price he can sell 120 per month. After some time, he raises the price to Rs. 15 per pen. Following the price rise: • Only 60 pens were sold every month • The number of refills bought were down from 200 to 150. • The number of ink pen customers bought went up from 90 to 180 per month.? theory, EduRev gives you an
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