REVENUE IN PERCENTAGE - SHORT CUT METHOD

CONDITION 1. :-
                             If the price of a commodity is increased by x % and its consumption is decreased by y % ,  then effect on revenue -

                           $\left \{ x-y-\frac{xy}{100} \right \}$


CONDITION 2. :-
                               If the price of a commodity is decreased by x % and its consumption is increased by y % ,  then,  effect on revenue -

                            $\left \{ y-x-\frac{yx}{100} \right \}$


General formula for both the cases -

            Increase % value - Decrease % value - $\frac{Inc.\, \%\, value\times Dec.\% \,value}{100}$


  NOTE :-  Value is  increased or decreased,  according to the positive or negative sign in the answer obtained.

  For eg.   If the price of car is decreased by 12 % and sale is increased by 10 % , then what will be the effect on income?
     
     sol.     % effect = 10 - 12 - $\frac{12\, \times\, 10}{100}$

                              = -2 - $\frac{12}{10}$

                              = -3.2 %
            $\therefore$  income is decreased by 3.2 %.
                             

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