If the price of gold increases by 30%, by how much must the quantity of…

2024

If the price of gold increases by 30%, by how much must the quantity of ornaments be reduced so that expenditure remains the same?

  1. A.

    30%

  2. B.

    23 + (1/13)%

  3. C.

    27/13%

  4. D.

    19%

Attempted by 9 students.

Show answer & explanation

Correct answer: B

Solution: compute the required reduction in quantity when price increases by 30%.

  • Let the original price be P and original quantity be Q.

  • New price = 1.3 × P. To keep expenditure the same: P · Q = 1.3P · Q_new.

  • Solve for Q_new: Q_new = Q / 1.3 = (10/13)Q.

  • Reduction = Q − Q_new = Q − (10/13)Q = (3/13)Q, so the fraction reduced is 3/13 ≈ 0.230769.

  • As a percentage: (3/13) × 100% = 300/13% = 23 + (1/13)% ≈ 23.077%.

  • Answer: Reduce the quantity by 23 + (1/13)% (approximately 23.08%).

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