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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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Percentages express a quantity as parts per hundred and support calculations involving increases, decreases, discounts, commissions, taxes, and successive changes. Questions require distinguishing percentage change from percentage points and identifying the original value when a final value and its percentage change are given.

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