If the price of apple increases from Rs 80 pe | vedclass

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Question

(C) Let the initial price be $P_1 = 80$ and the final price be $P_2 = 100$.Let the initial consumption be $C_1$ and the final consumption be $C_2$.Sin

Vedclass · Accepted Answer

$20$

Vedclass · Answer

(C) Let the initial price be $P_1 = 80$ and the final price be $P_2 = 100$.Let the initial consumption be $C_1$ and the final consumption be $C_2$.Since the expenditure remains the same,$P_1 	imes C_1 = P_2 	imes C_2$.Therefore,$\frac{C_2}{C_1} = \frac{P_1}{P_2} = \frac{80}{100} = \frac{4}{5}$.The decrease in consumption is $C_1 - C_2 = 5 - 4 = 1$ unit.The percentage decrease in consumption is $\left( \frac{1}{5} ight) 	imes 100 = 20\%$.

If the price of apple increases from $Rs$ $80$ per $kg$ to $Rs$ $100$ per $kg$,by what percent should a person decrease the consumption of apple so that his expenditure remains the same (in $\%$)?

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