Inflation again

If the value of commodity increases by 85%, what percent should consumption be reduced so that spending increases by only 48%?

Final Answer:

p =  20 %

Step-by-step explanation:

r1=100%+85%=1+10085=1.85 r2=100%+48%=1+10048=1.48  r1   r3 = r2  r3=r2/r1=1.48/1.85=54=0.8  p=100 (1r3)=100 (10.8)=20%



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