AFCAT Model Paper 6

Given:
The price of a certain article is increased by 15%
The customer wants to keep his expenditure same as before
Calculation:
We know that:
When one of the factors is increased by x%,
Then to make the resultant unchanged,
The other factor must be decreased by = (

x

100+x

×100)
Now, According to the question,
The price of the article is increased by 15%,
⇒ The required reduction in the consumption of the article =

15

100+15

×100%
⇒(

15

115

)×100%=(

300

23

)%=13.04%
∴ The required reduction in the consumption of the article is 13.04%.