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If with a rise of 10% in prices the wages are increased by 20%, the real wage increases by
  • a)
    10%
  • b)
    More than 10%
  • c)
    20%
  • d)
    Less than 10%
Correct answer is option 'D'. Can you explain this answer?
Most Upvoted Answer
If with a rise of 10% in prices the wages areincreased by 20%, the rea...
(120/110)*100=109.09
109.09-100=9.09
Which is less than 10%
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Community Answer
If with a rise of 10% in prices the wages areincreased by 20%, the rea...
Solution:

Given, rise in prices = 10%
Wages increased by = 20%

Let's assume the initial price of a product is Rs. 100 and the initial wage is Rs. 100.

After a 10% increase in prices, the new price of the product becomes Rs. 110.

After a 20% increase in wages, the new wage becomes Rs. 120.

Now, let's calculate the real wage increase using the formula:

Real wage increase = (New wage - Initial wage) / Initial wage x 100%

= (120 - 100) / 100 x 100%
= 20%

Therefore, the real wage increase is 20%.

Hence, the correct answer is option D, i.e., less than 10%.
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If with a rise of 10% in prices the wages areincreased by 20%, the real wage increases bya)10%b)More than 10%c)20%d)Less than 10%Correct answer is option 'D'. Can you explain this answer?
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