Class 12 Exam > Class 12 Questions > a 5% rice in price of a good leads to 20% fal...
Start Learning for Free
a 5% rice in price of a good leads to 20% fall in demand. a consumer buys 80 units of goods at a price of rupees 10 per unit. how many units will the consumer buy when price changes to rupees 11.
Most Upvoted Answer
a 5% rice in price of a good leads to 20% fall in demand. a consumer b...
Effects of Price Change on Demand
Given Information:
- Initial Price of Good: Rs. 10
- Initial Quantity Demanded: 80 units
- Price Increase: 5%
- Corresponding Demand Decrease: 20%
Calculating New Price:
The price of the good has increased by 5%, so the new price is:
New Price = 10 + (10 x 5%) = Rs. 10.50
Calculating New Quantity Demanded:
As per the given information, a 5% increase in price leads to a 20% fall in demand. Using this information, we can calculate the new quantity demanded as:
New Quantity Demanded = 80 - (80 x 20%) = 64 units
Explanation:
When the price of a good increases, the demand for that good decreases. This is because consumers tend to buy less of a good when its price increases. In this case, the price of the good has increased by 5%, which has led to a 20% fall in demand. This means that consumers are buying 20% less of the good than they were before the price increase.
Using the given information, we can calculate that the new price of the good is Rs. 10.50. We can also calculate that the new quantity demanded is 64 units. This means that the consumer will buy 16 units less of the good than they were buying before the price increase.
Overall, this shows that there is an inverse relationship between the price of a good and the quantity demanded of that good. When the price increases, consumers tend to buy less of the good, and when the price decreases, consumers tend to buy more of the good.
|
Explore Courses for Class 12 exam
|
|
Similar Class 12 Doubts
a 5% rice in price of a good leads to 20% fall in demand. a consumer buys 80 units of goods at a price of rupees 10 per unit. how many units will the consumer buy when price changes to rupees 11.
Question Description
a 5% rice in price of a good leads to 20% fall in demand. a consumer buys 80 units of goods at a price of rupees 10 per unit. how many units will the consumer buy when price changes to rupees 11. for Class 12 2024 is part of Class 12 preparation. The Question and answers have been prepared according to the Class 12 exam syllabus. Information about a 5% rice in price of a good leads to 20% fall in demand. a consumer buys 80 units of goods at a price of rupees 10 per unit. how many units will the consumer buy when price changes to rupees 11. covers all topics & solutions for Class 12 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for a 5% rice in price of a good leads to 20% fall in demand. a consumer buys 80 units of goods at a price of rupees 10 per unit. how many units will the consumer buy when price changes to rupees 11..
a 5% rice in price of a good leads to 20% fall in demand. a consumer buys 80 units of goods at a price of rupees 10 per unit. how many units will the consumer buy when price changes to rupees 11. for Class 12 2024 is part of Class 12 preparation. The Question and answers have been prepared according to the Class 12 exam syllabus. Information about a 5% rice in price of a good leads to 20% fall in demand. a consumer buys 80 units of goods at a price of rupees 10 per unit. how many units will the consumer buy when price changes to rupees 11. covers all topics & solutions for Class 12 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for a 5% rice in price of a good leads to 20% fall in demand. a consumer buys 80 units of goods at a price of rupees 10 per unit. how many units will the consumer buy when price changes to rupees 11..
Solutions for a 5% rice in price of a good leads to 20% fall in demand. a consumer buys 80 units of goods at a price of rupees 10 per unit. how many units will the consumer buy when price changes to rupees 11. in English & in Hindi are available as part of our courses for Class 12.
Download more important topics, notes, lectures and mock test series for Class 12 Exam by signing up for free.
Here you can find the meaning of a 5% rice in price of a good leads to 20% fall in demand. a consumer buys 80 units of goods at a price of rupees 10 per unit. how many units will the consumer buy when price changes to rupees 11. defined & explained in the simplest way possible. Besides giving the explanation of
a 5% rice in price of a good leads to 20% fall in demand. a consumer buys 80 units of goods at a price of rupees 10 per unit. how many units will the consumer buy when price changes to rupees 11., a detailed solution for a 5% rice in price of a good leads to 20% fall in demand. a consumer buys 80 units of goods at a price of rupees 10 per unit. how many units will the consumer buy when price changes to rupees 11. has been provided alongside types of a 5% rice in price of a good leads to 20% fall in demand. a consumer buys 80 units of goods at a price of rupees 10 per unit. how many units will the consumer buy when price changes to rupees 11. theory, EduRev gives you an
ample number of questions to practice a 5% rice in price of a good leads to 20% fall in demand. a consumer buys 80 units of goods at a price of rupees 10 per unit. how many units will the consumer buy when price changes to rupees 11. tests, examples and also practice Class 12 tests.
|
|
Explore Courses for Class 12 exam
|
|
Signup for Free!
Signup to see your scores go up within 7 days! Learn & Practice with 1000+ FREE Notes, Videos & Tests.
|
© EduRev
|
Education Revolution
|
Follow Us
|
Signup to see your scores
go up within 7 days!
Access 1000+ FREE Docs, Videos and Tests
Takes less than 10 seconds to signup