Hi,
In the expression [price * 1.1], SQL Server tries to implicit convert price into numeric(2,1) because 1.1 is type numeric(2,1) which has higher precedence than nvarchar. I think your table should have values greater that 10.
say 10.1, 10.2...... where the precision value is exceeding 2.
To resolve this try
update table set price = price * cast(1.1 as numeric(10,4))
Note: If your price still has more that 10 precision value then change it accordingly.
Thanks
Gopi