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If food prices go up by 10%, by how much...

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 `1/11` %

B

0.1

C

11 `1/9` %

D

The data is not sufficient.

Text Solution

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The correct Answer is:
To solve the problem of how much a man should reduce his consumption when food prices increase by 10% in order to keep his expenditure constant, we can follow these steps: ### Step-by-Step Solution: 1. **Understand the relationship between price, consumption, and expenditure**: - Expenditure (E) is given by the formula: \[ E = \text{Price} \times \text{Consumption} \] - If the expenditure is to remain constant, any increase in price must be offset by a decrease in consumption. 2. **Define the initial price and consumption**: - Let the initial price of food be \( P \) and the initial consumption be \( C \). - Thus, the initial expenditure can be expressed as: \[ E = P \times C \] 3. **Calculate the new price after a 10% increase**: - If the price increases by 10%, the new price \( P' \) will be: \[ P' = P + 0.10P = 1.10P \] 4. **Set up the equation for constant expenditure**: - To keep the expenditure constant after the price increase, we have: \[ E = P' \times C' \] - Substituting \( P' \) into the equation gives: \[ P \times C = 1.10P \times C' \] 5. **Simplify the equation**: - Dividing both sides by \( P \) (assuming \( P \neq 0 \)): \[ C = 1.10 \times C' \] - Rearranging this gives: \[ C' = \frac{C}{1.10} \] 6. **Calculate the reduction in consumption**: - The reduction in consumption \( R \) is: \[ R = C - C' = C - \frac{C}{1.10} = C \left(1 - \frac{1}{1.10}\right) \] - Simplifying this: \[ R = C \left(\frac{1.10 - 1}{1.10}\right) = C \left(\frac{0.10}{1.10}\right) = \frac{C}{11} \] 7. **Calculate the percentage reduction**: - The percentage reduction in consumption is given by: \[ \text{Percentage Reduction} = \left(\frac{R}{C}\right) \times 100 = \left(\frac{\frac{C}{11}}{C}\right) \times 100 = \frac{100}{11} \approx 9.09\% \] ### Final Answer: The man should reduce his consumption by approximately **9.09%** to keep his expenditure constant after a 10% increase in food prices.
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