In a given fiscal quarter, a retail company increased the unit price of its primary product by while the total quantity of the product sold decreased by , where . As a result of these two concurrent changes, the total revenue generated from the product experienced a net decrease of exactly . Which of the following statements must be true? Select all that apply.
- The value of is .Cevap
- The final revenue generated from the product is equal to of the initial revenue.Cevap
- If the unit price had instead decreased by and the quantity sold had increased by , total revenue would still have decreased by .Cevap
- DThe net percentage change in total revenue depends directly on the initial unit price of the product.
- EThe sequential percentage changes of and offset each other, resulting in zero net change in total revenue.
Cevap
The correct statements are that the value of p is 20, the final revenue is 96% of the initial revenue, and reversing the direction of the percentage changes would still result in a 4% decrease.
The correct options accurately identify that , that the final revenue is of the initial value, and that reversing the roles of increase and decrease produces the exact same net multiplier of . Using the difference of squares identity , the combined multiplier for price and quantity shifts is . Solving gives , so . Additionally, , showing symmetry in net outcome.
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Successive Percent Changes and Base Shift Multipliers