Q49
ArithmeticPercentage, Profit & Loss
If food prices go up by 10%, by how much should a man reduce his consumption so as not to increase his expenditure?
- a.$9\frac{1}{11}$%
- b.10%
- c.$11\frac{1}{9}$%
- d.11%
Answer: (A) $9\frac{1}{11}$%
Reduction needed = $\frac{10}{100 + 10} \times 100 = \frac{100}{11} = 9\frac{1}{11}$%. A 10% cut is too much because it is measured on the old consumption. $11\frac{1}{9}$% is the extra consumption allowed when prices fall by 10%, a different case.