If the price of a commodity is decreased by 20% and its consumption is increased by 10%, what will be the increase or decrease in the expenditure on the commodity?

Given the price of a commodity is decreased by  p = 20%

And its consumption is increased by q = 10%

Now, required increase or decrease in the expenditure on the commodity can be 

p + q + pq/100 = -20 + 10 - 200/100 = -10 - 2 = -12%.

Hence, decrease in the expenditure = 12%