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If the price of an article is increased by 15%, then by how much the household should decrease their consumption so as to keep his expenditure same.
  • a)
    11(1/23)%
  • b)
    11(2/23)%
  • c)
    13(1/23) %
  • d)
    13(2/23)%
Correct answer is option 'C'. Can you explain this answer?
Most Upvoted Answer
If the price of an article is increased by 15%, then by how much the h...
By Analyzing the given information
Decrease in expenditure = (15/115)*100 = 13(1/23) %
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Community Answer
If the price of an article is increased by 15%, then by how much the h...
Explanation:
To calculate the decrease in consumption needed to keep the expenditure the same after a 15% price increase, we can use the following formula:
Let x be the original price of the article and y be the original quantity consumed.
Expenditure = Price * Quantity
After a 15% increase in price, the new price will be 1.15x. Let z be the new quantity to be consumed to keep the expenditure the same.
Therefore,
Expenditure = 1.15x * z
To keep the expenditure the same:
x * y = 1.15x * z
Solving for z:
z = (x * y) / (1.15x)
z = y / 1.15
z = 13.043y

Calculation:
The decrease in consumption needed to keep the expenditure the same is:
Decrease = y - z
Decrease = y - 13.043y
Decrease = -0.043y
To calculate the percentage decrease:
Percentage Decrease = (0.043y / y) * 100%
Percentage Decrease = 4.3%
Therefore, the household should decrease their consumption by 13(1/23)% to keep their expenditure the same after a 15% price increase.
So, the correct answer is option C. 13(1/23)%.
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