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If the price has fallen by 10% what percent of its consumption be: increased so that the expenditure may be the same as before?

Correct answer: C. 11 1/9 %

  • A. 11%
  • B. 10%
  • C. 11 1/9 %
  • D. 9 1/11 %Islamic Studies Quiz

Explanation

After a 10% price fall, the price becomes 90% of the original. To keep expenditure unchanged, consumption must become 100/90 = 111 1/9% of the original, so it must increase by 11 1/9%. The likely mistake is choosing 10% by assuming the percentage price decrease and required consumption increase are equal.

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