If the price of gold increases by 30%, find by how much the quantity of ornaments must be reduced so that the expenditure may remain the same as before.
The price of gold increases by 30%
let the initial price be x
let the initial consumption by y
since the price of gold increases by 30 %
final price of gold =1.3x
now, expenditure=price*consumption
let the final consumption be z
given total expenditure remains constant
Therefore
x*y=1.3 x *z
Therefore z=(y/1.3)
% decrease=((initial consumption-final consumption)/initial consumption)*100%
Therefore,
ย % decrease=((y-z)/y)*100%=(1-(1/1.3))*100%=(1-0.769)*100%=
= 23 1/13%
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