If the price of gold increases by 50%, find by how much the quantity of ornaments must be reduced, so that the expenditure may remain the same as before?
Q1. If the price of gold increases by 50%, find by how much the quantity of ornaments must be reduced, so that the expenditure may remain the same as before?
Answer: 33.33%
Explanation: If gold price rises by 50%, new price = 1.5P; to keep expenditure the same, quantity = original/1.5 = 2/3 of original, a reduction of 1/3 ≈ 33.33%.