if the price of sugar rises by 10%, by what percentage should a housewife reduce her consumption in order to spend the same amount as previously...??? thanx in advance :)
Let consumption be C and unit price be P.
Then total cost is P * C = PC
Increase price by 10% to get new P = 1.1P
New total cost is 1.1P * Q = PC
where Q is the new consumption
=> Q = C/1.1 = 0.91C
Consumption must therefore be reduced by 0.09 or 9%
She can now consume (100/110)% of the previous. Or 90.9% of previous consumption.
This will be a reduction of 9.1%;
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Let consumption be C and unit price be P.
Then total cost is P * C = PC
Increase price by 10% to get new P = 1.1P
New total cost is 1.1P * Q = PC
where Q is the new consumption
=> Q = C/1.1 = 0.91C
Consumption must therefore be reduced by 0.09 or 9%
She can now consume (100/110)% of the previous. Or 90.9% of previous consumption.
This will be a reduction of 9.1%;