Question

The price of sugar is increased by 17%.
A person wance to increase his empenditure
by 5% only. what percent should he decrease
his consumption ?​

Answer 1

Answer:

The correct answer is 10.26℅.

Step-by-step explanation:

This can be determined by using a simple formula that equates the net change in price, consumption and expenditure.

E= x+ y + xy/100, where E is the net change in expenditure, x is the net change in consumption and y is the net change in the price of the commodity.

Here, the change in expenditure is +5, price is +17 so putting these values in the equation-

5 = x + 17 + 17x/100

By solving this, we get,

x =- 1200/117 = -10.26℅ ( - indicates that it needs to be decreased)

Therefore, consumption needs to be decreased by 10.26℅