Question

If the price of the commodity is increased by 50% by what percent must its consumption be reduced so as to keep the same expenditure on its consumption?(33.33%)​

Answer 1

33.33 % must its consumption be reduced so as to keep the same expenditure on its consumption.

Step-by-step explanation:

If the price of a commodity increases by r%, then the reduction in consumption so as not to increase the expenditure is,

$(\frac{r}{r+100}\times 100)%$ %

Here, r = 50 %

The reduction in consumption so as not to increase the expenditure is,

$(\frac{50}{100+50}\times 100)$ %

= $(\frac{50}{150}\times 100)$ %

= $\frac{100}{3}$ %

= 33.33 %

Hence, 33.33 % must its consumption be reduced so as to keep the same expenditure on its consumption.

Answer 2

Answer:

33.33%

Step-by-step explanation:

Hope it helps!!