Problema Solution

When the price of a product was decreased by 10%,the number solved increased by 30%. What was the increase in the total revenue.

Answer provided by our tutors

Let

p = the price per product

x = the number of products

px = the revenue before the decrease

After the decrease:

p - 0.10p = 0.90p = the price per product

x + 0.30x = 1.30x the number of products sold

0.90p*1.30x = 1.17px the revenue after the decrease

The increase in the total revenue is:

1.17px - px = px(1.17 - 1) = 0.17x or 17%.