Price Fixation and Inflation

The price of an object depends upon the nature of the market. If the manufacturer has monopoly power in the market then manufacturer himself decides the price of the goods. this note has information about the price fixation and inflation.

Summary

The price of an object depends upon the nature of the market. If the manufacturer has monopoly power in the market then manufacturer himself decides the price of the goods. this note has information about the price fixation and inflation.

Things to Remember

  • Manufacturer can be an individual, organization or business.
  • Land, manpower and organization are the resources needed for manufacturing goods. 
  • The price of an object depends upon the nature of market. 
  • The competition among the consumers and demanders gets created as the demand of goods is more than that of supply and the price of goods rises.

MCQs

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Subjective Questions

Q1:

Find the percentage of the given number.

(a) \(\frac{3}{4}\)       


Type: Very_short Difficulty: Easy

Show/Hide Answer
Answer: <p>Solution:</p> <p>\(\frac{3}{4}\)</p> <p>=\(\frac{3}{4}\)&times; 100%</p> <p>= 3&times; 25%</p> <p>= 75%</p>

Q2:

Find the percentage of  \(\frac{5}{8}\)


Type: Very_short Difficulty: Easy

Show/Hide Answer
Answer: <p>Solution:</p> <p>\(\frac{5}{8}\)</p> <p>= \(\frac{5}{8}\)&times; 100%</p> <p>= \(\frac{5}{2}&times; 25</p> <p>= \frac{125}{2}\)</p> <p>=62 \(\frac{1}{2}\) %</p>

Q3:

Price of the Jacket = Rs 1250

Price after discount = Rs 1100

Find  discount percentage.


Type: Short Difficulty: Easy

Show/Hide Answer
Answer: <p>Solution:</p> <p>Given information:</p> <p>Price of the Jacket = Rs 1250</p> <p>Price after discount = Rs 1100</p> <p>Actual discount = Rs 1250 - RS 1100 = Rs 150</p> <p>Discount percentage = \(\frac{discount amount}{total amount}\) \(\times\) 100%</p> <p>= \(\frac{150}{1250}\) \(\times\) 100%</p> <p>= 12 %</p>

Q4:

Find percentage  0.59


Type: Very_short Difficulty: Easy

Show/Hide Answer
Answer: <p>Solution:</p> <p>0.59</p> <p>= 0.59&times;100%</p> <p>=59%</p>

Q5:

A goat cost Rs 12,000 after 12% discount. What is the discount amount? How much should we pay for discount?


Type: Long Difficulty: Easy

Show/Hide Answer
Answer: <p>Solution;</p> <p>Given information,</p> <p>Market Price of the goat = Rs 12,000</p> <p>Discount percent = 12%</p> <p>&there4; Actual Discount = Rs 12,000 &times; \(\frac{12}{100}\) = Rs 1440</p> <p>Cost of goat after discount = Market Price - discount amount</p> <p>= Rs 12,000 - Rs 1440</p> <p>= Rs 10,560</p> <p>&there4; Discount = Rs 1440 and Actual Price = Rs10560</p> <p>We have to pay Rs 10,560 after discount.</p>

Q6:

In Class-7, 8%  students failed out of 75 students. Find how many students passed the exam?


Type: Long Difficulty: Easy

Show/Hide Answer
Answer: <p>Solution:</p> <p>Given information,</p> <p>Total students in class 7 = 75 students</p> <p>Failed percent = 8%</p> <p>Now,</p> <p>Failed students = 75&times; \(\frac{8}{100}\)</p> <p>= 3&times; 2</p> <p>= 6 Students</p> <p>Then,</p> <p>Number of passed students = Total Students - Failed Students</p> <p>= 75 - 6</p> <p>= 69</p> <p>Hence, 69 students passed the exam.</p> <p></p>

Q7:

Hari earns Rs 18,500 monthly. He pays 13% Tax. How much amount he pays?


Type: Long Difficulty: Easy

Show/Hide Answer
Answer: <p>Solution:</p> <p>Given information,</p> <p>Hari's Income = Rs 18,500</p> <p>Tax Percentage =13%</p> <p>&there4; Amount paid for Tax = Rs 18,500 &times; 13%</p> <p>= Rs 18,500 &times; \(\frac{13}{100}\)</p> <p>= Rs 2405</p> <p>&there4; He pays Rs 2405 tax.</p>

Q8:

The Population of Dharan is 2,666,200 and the growth rate of the population is 1.50%. Find the population  of Dharan after 1 year?


Type: Long Difficulty: Easy

Show/Hide Answer
Answer: <p>Solution:</p> <p>Given information,</p> <p>Here,</p> <p>Population of Dharan = 2,666,200</p> <p>Population growth rate = 1.50%</p> <p>Actual Population growthrate = 2,666,200 &times; \(\frac{1.50}{100}\)</p> <p>= 39993</p> <p>&there4; The Population of Dharan after 1 year = 39993</p>

Q9:

A Teacher earns Rs 17,000 monthly and pays 15% income tax. Find his income, after paying income tax?


Type: Long Difficulty: Easy

Show/Hide Answer
Answer: <p>Solution:</p> <p>Given information,</p> <p>Teacher's monthly income = Rs 17,000</p> <p>Income Tax Percent = 15%</p> <p>Actual amount of Tax = Rs 17,000&times; \(\frac{15}{100}\)</p> <p>= Rs 2550</p> <p>Now, his income after paying income tax = Total income - Amount of Tax</p> <p>= Rs 17,000 - Rs 2550</p> <p>= Rs 14450.</p>

Q10:

Butwal has the Population of 3,40,000 among them 25,500 use computer. Find the percentage of the people using computer?


Type: Long Difficulty: Easy

Show/Hide Answer
Answer: <p>Solution:</p> <p>Given information,</p> <p>Butwal's Population = 3,40,000</p> <p>Number of People using computer = 25,500</p> <p>&there4; Population Percentage of people using computer = \(\frac{25500}{340,000}\)&times; 100</p> <p>= 7.5%</p>

Q11:

A cap cost Rs 350 and the price of the cap after discount is Rs 315. Find the discount percentage?


Type: Short Difficulty: Easy

Show/Hide Answer
Answer: <p>Solution:</p> <p>Given information,</p> <p>Price of a cap = Rs 350</p> <p>Price of cap after discount = Rs 315</p> <p>Actual Discount = Rs 350 - Rs 315 = Rs 35</p> <p>&there4; Discount Percentage = \(\frac{Discount Amount}{Actual Price }\) &times; 100</p> <p>= \(\frac{35}{350}\)&times; 100</p> <p>= 10%</p>

Q12:

Namrata  buys a Television at 13% discount and gets Rs 3,000 discount. Find the marked price of the Television?


Type: Short Difficulty: Easy

Show/Hide Answer
Answer: <p>Solution:</p> <p>Given information,</p> <p>Let, the marked price of the Television be x.</p> <p>So, 13% discount = Rs 3,000</p> <p>or, x &times; \(\frac{13}{100}\) = Rs 3,000</p> <p>or, x = \(\frac{3,000&times; 100}{13}\)</p> <p>or, x = Rs 23,076.92</p> <p>&there4; Marked price of Television = Rs 23,076.92</p> <p></p>

Q13:

A bag of Rice costs Rs 1200 one year ago. Now the bag of Rice costs Rs 1500.  Find the increased percentage of Rice ?


Type: Long Difficulty: Easy

Show/Hide Answer
Answer: <p>Solution:</p> <p>Given information,</p> <p>Last year's price of rice = Rs 1200</p> <p>Price of Rice, now = Rs1500</p> <p>Increased price = Rs 1500 - Rs 1200</p> <p>= Rs 300</p> <p>Increased Percentage =?</p> <p>Let, the increased Percentage be x.</p> <p>Rs 1200 \(\times\) x% = Rs 300</p> <p>Or, \(\frac{1200&times; x}{100}\) = 300</p> <p>Or, x = \(\frac{300}{12}\) = 25%</p> <p>&there4; The Price of Rice is increased by 25%.</p>

Q14:

Sarad's monthly salary is Rs 25,000. If 15% income tax is levied on the amount of Rs 200,000, how much income tax will he pay in a year?


Type: Short Difficulty: Easy

Show/Hide Answer
Answer: <p>Solution:</p> <p>Given information,</p> <p>Monthly Income = Rs 25,000</p> <p>Yearly income = Rs 25,000&times; 12 = Rs 3,00,000</p> <p>Taxable Income = Rs 3,00,000 - Rs 2,00,000 = Rs 1,00,000</p> <p>Income Tax = 15% of Rs 1,00,000</p> <p>= \(\frac{15}{100}\)&times; Rs 1,00,000</p> <p>= Rs 15,000</p> <p>\(\therefore\) He pays Rs 15,000 income tax in a year.</p>

Q15:

A furniture costing Rs 20,00,000 before VAT. Work out the cost of VAT if it is charged at 20%.


Type: Short Difficulty: Easy

Show/Hide Answer
Answer: <p>Solution:</p> <p>Given information,</p> <p>Cost of a furniture before VAT = Rs 20,00,000</p> <p>VAT rate = 20%</p> <p>Now,</p> <p>VAT amount = 20% of Rs 20,00,000</p> <p>= \(\frac{20}{100}\)&times; Rs 20,00,000</p> <p>= Rs 4,00,000</p> <p>\(\therefore\) VAT amount = Rs 4,00,000</p> <p></p>

Q16:

The Price of a Soyabean  increased from Rs 70 per kg to Rs 80 per kg. By how much percent has the price increased?


Type: Short Difficulty: Easy

Show/Hide Answer
Answer: <p>Solution:</p> <p>Given information,</p> <p>Original Income = Rs 70</p> <p>New Price = Rs 80</p> <p>Percentage increase = \(\frac{Amount of change}{Original value}\) &times; 100</p> <p>= \(\frac{10}{70}\)&times; 100</p> <p>= \(\frac{1000}{70}\)</p> <p>= 14\(\frac{2}{7}\) %</p> <p>&there4;The Price is increased by 14 \(\frac{2}{7}\) %</p> <p></p>

Q17:

Nargis spends 65% of his salary and saves Rs 525 per month. Find his salary per month.


Type: Short Difficulty: Easy

Show/Hide Answer
Answer: <p>Solution:</p> <p>Given information,</p> <p>Since Nargis spends 65% of his salary, He saves (100 - 65%) = 35% of his salary.</p> <p>Given, 35% of his salary = Rs 525</p> <p>\(\frac{35}{100}\) &times; his salary = Rs 525</p> <p>&there4; His Salary = Rs 525&times; \(\frac{100}{35}\)</p> <p>= Rs 1500</p>

Q18:

If Renu's income is more than Saroj's income by 20%, by how much percent is Saroj's income less than Renu's income?


Type: Long Difficulty: Easy

Show/Hide Answer
Answer: <p>Solution:</p> <p>Given information,</p> <p>let, Saroj's income = Rs x</p> <p>Then, Renu's income = (100 + 20)% of x</p> <p>= \(\frac{120}{100}\) &times; x</p> <p>= \(\frac{6x}{5}\)</p> <p>Difference of Renu and Saroj's income</p> <p>\(\frac{6x}{5}\) - x</p> <p></p> <p>= \(\frac{6x-5x}{5}\)</p> <p>= \(\frac{x}{5}\)</p> <p>Now, \(\frac{difference in income}{Renu's income} \)&times; 100</p> <p>= \(\frac{\frac{x}{5}}{\frac{6x}{5}}\)&times; 100</p> <p>= \(\frac{x}{5}\)&times; \(\frac{5}{6x}\)&times; 100</p> <p>= 16\(\frac{2}{3}\) %</p> <p>Thus, Saroj's income is less than Renu's income by 16\(\frac{2}{3}\) %</p> <p></p> <p></p>

Q19:

The Population of Ilam was 50,000. The male population increased by 4% and female population decreased by 6% make no change in the total population. Find the male and female population of the town.


Type: Long Difficulty: Easy

Show/Hide Answer
Answer: <p>Solution:</p> <p>Given information,</p> <p>The Population of Ilam = 50,000</p> <p>Let, the male and female population be x and (50,000 - x) respectively.</p> <p>By question,</p> <p>4% of x = 6% of (50,000 - x)</p> <p>or, 4x = 300,000 - 6x</p> <p>or, 10x = \(\frac{300,000}{10}\)</p> <p>\(\therefore\) x = 30,000</p> <p>Hence, Male population = 30,000 and</p> <p>Female population = 50,000 - x = 50,000 - 30,000 = 20,000</p>

Q20:

 On Sunday, 840 people visited in Zoo. But, only 420 people visited the Zoo on Monday. Find the decrease percentage ?


Type: Long Difficulty: Easy

Show/Hide Answer
Answer: <p>Solution:</p> <p>Number of people visited in Zoo on Sunday = 840</p> <p>Number of people visited in Zoo on Monday = 420</p> <p>Decrease in number = 840 - 420 = 420</p> <p>Percentage decrease= \(\frac{Decrease in number}{Total number}\) \(\times\) 100%</p> <p>= \(\frac{420}{840}\) \(\times\) 100%</p> <p>= 50%</p>

Q21:

 Find the value:

 10% of Rs 250


Type: Short Difficulty: Easy

Show/Hide Answer
Answer: <p>Solution:</p> <p>Here, Rs 10% of Rs 250</p> <p>\(\frac{10}{100}\)\(\times\) 250</p> <p>= Rs 25</p>

Q22:

 Find the Value:

25% of 12.5 days.


Type: Short Difficulty: Easy

Show/Hide Answer
Answer: <p>Solution:</p> <p>Let x of 25% = 12.5 days.</p> <p>Or, x \(\times\)\(\frac{25}{100}\) = 12.5</p> <p>Or, x = \(\frac{12.5\times100}{25}\)</p> <p>= 50</p> <p>Hence, 25% of 12.5 days = 50 days.</p>

Q23:

 Find the discount Percentage.

Shirt's price= Rs 500

Price after discount = Rs 420

 


Type: Short Difficulty: Easy

Show/Hide Answer
Answer: <p>Solution:</p> <p>Given information:</p> <p>Price of the shirt = Rs 500</p> <p>Price after discount = Rs 420</p> <p>Actual discount = Rs 500 - Rs 420 = Rs 80</p> <p>Hence, discount percentage =\(\frac{discount amount}{Total amount }\) \(\times\)100%</p> <p>= \(\frac{80}{500}\) \(\times\) 100%</p> <p>= 16%</p>

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Price Fixation and Inflation

Price Fixation and Inflation

a

A manufacturer produces goods. A manufacturer can be an individual, organization or business. Various raw materials are needed to manufacture various goods. Land, manpower and organization are the resources needed for manufacturing goods. Such resources need to be paid for their services. For example, the loan should be paid for credit, wages for labour etc. Such payment and expenses are called investment. According to the investment, the marked price of a product is determined. The prices of the goods are determined after adding tax fixed by the government. Government donates to the investors for their manufacturing. In this case, the prices of the goods are even lower than the marked price.

The price of an object depends upon the nature of the market. If the manufacturer has monopoly power in the market then manufacturer himself decides the price of the goods. But the monopolist manufacturer should decrease the price of the goods if he wants to increase the sale of goods. If he doesn’t decrease the price of goods then the sale of goods may be less. In the competitive market, the number of producers, distributors and consumers of same goods or products may be more. In such market, the price of goods is determined according to the available resources and demand of the consumers. When the price of the goods is less, the consumer demands the more quantity of goods whereas when the price of good rises, the consumer demands it comparatively less. Finally, the amounts of the goods are decided by balancing the cost of the manufacturing and the demand of customers. If the price of the goods is more than the price decided by the manufacturer, then the supply of goods is more than the demand. There creates a competition among the producers for decreasing the price of goods due to the high amount of supply. As a result, the price of goods decreases up to the price decided by the manufacturer. But if the price of the goods is less than the price decided by the manufacturer, then the demands of goods is more than the supply of goods. As a result, the competition among the consumers and demanders gets created as the demand of goods is more than that of supply and the price of goods rises.

Lesson

Our Economic Activities

Subject

Social Studies and Population Education

Grade

Grade 8

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