Question

The economy of Xiberia consists of exactly two industries: mining and manufacturing. It was

expected that the economy would grow by 18% if mining grew by 10% and manufacturing by

20%. However, if manufacturing grew only by 10%, then, for the economy to still grow by 18%,

mining needs to grow by what %?

Answer 1

This is a question to compare ratios.

We have the first set whereby :

Mining grows by 10%

Manufacturing grows by 20%

Economy at large = 18%

Since both mining and manufacturing contribute to the economic growth, we need to get the difference between mining growth and the economic growth and also manufacturing and economic growth.

Economy - mining = 18 - 10 = 8

Manufacturing - economy = 20 - 18 = 2

The ratios of :

(Manufacturing - Economy) : (Economy - mining) = 2/8 = 1/4

The second scenario :

Manufacturing = 10%

Economy = 18%

Let mining = x

Since manufacturing is lower and we need to maintain the same growth for the economy, x must be larger than 18%.

Getting the ratios of the differences we have:

Economy - manufacturing = 18 - 10 = 8

Mining - Economy = x - 18

The ratio is : 8 / (x - 18)

Since the growth rate remains the same in both cases, the ratios also remain the same :

8 / (x - 18) = 1 / 4

32 = x - 18

x = 18 + 32

X = 50%

The answer is : 50%

Answer 2

Answer:

37.5%

Step-by-step explanation:

I don't have the explanation but answer is correct same question is there in my IPM book where this answer is given. Please explain if you know.