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When the cost of Tobacco was increased by 50%, a certain hardened smoker, who maintained his formal scale of consumption,said that the rise had increased his cost of living by 5%. Before the change in price, the percentage of his cost of living was due to buying Tobacco is? (a) 15% (b) 8% (c) 10% (d) None of these?
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When the cost of Tobacco was increased by 50%, a certain hardened smok...
Solution:

Let's assume that the smoker was buying x units of Tobacco before the price rise, and after the price rise, he is still buying x units of Tobacco. Let the original price of Tobacco be p.

After the price rise, the new price of Tobacco = 1.5p (as the cost of Tobacco increased by 50%)

Let's assume that the smoker's total expenditure before the price rise was T. So, we can say that:

T = xp (as he was buying x units of Tobacco at p price)

After the price rise, his total expenditure = x(1.5p) = 1.5xp

Now, as per the question, the smoker said that the rise had increased his cost of living by 5%. It means that the new expenditure is 5% more than the original expenditure. So, we can write:

1.05T = 1.5xp (as the new expenditure is 1.5xp and it is 5% more than the original expenditure)

Simplifying, we get:

x/p = 0.7

It means that before the price rise, the percentage of his cost of living due to buying Tobacco was:

(xp/T) * 100 = (x/p) * 100 = 70%

Therefore, the answer is (d) None of these.

Explanation: The question doesn't provide any information to calculate the percentage of his cost of living before the change in price. We need to assume some values and use the given information to calculate the answer.
Community Answer
When the cost of Tobacco was increased by 50%, a certain hardened smok...
Item w I IW

tobacco x 50 50x

others 100-x 100 10000

sum of WI /sum of I

105=10000+50x/100
10500=10000+50x
500 =50x
x = 10%
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When the cost of Tobacco was increased by 50%, a certain hardened smoker, who maintained his formal scale of consumption,said that the rise had increased his cost of living by 5%. Before the change in price, the percentage of his cost of living was due to buying Tobacco is? (a) 15% (b) 8% (c) 10% (d) None of these?
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When the cost of Tobacco was increased by 50%, a certain hardened smoker, who maintained his formal scale of consumption,said that the rise had increased his cost of living by 5%. Before the change in price, the percentage of his cost of living was due to buying Tobacco is? (a) 15% (b) 8% (c) 10% (d) None of these? for CA Foundation 2024 is part of CA Foundation preparation. The Question and answers have been prepared according to the CA Foundation exam syllabus. Information about When the cost of Tobacco was increased by 50%, a certain hardened smoker, who maintained his formal scale of consumption,said that the rise had increased his cost of living by 5%. Before the change in price, the percentage of his cost of living was due to buying Tobacco is? (a) 15% (b) 8% (c) 10% (d) None of these? covers all topics & solutions for CA Foundation 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for When the cost of Tobacco was increased by 50%, a certain hardened smoker, who maintained his formal scale of consumption,said that the rise had increased his cost of living by 5%. Before the change in price, the percentage of his cost of living was due to buying Tobacco is? (a) 15% (b) 8% (c) 10% (d) None of these?.
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