Suppose a group of consumers spend 30% of their disposable income on food, 20% on clothing, and 50% on rent. If over the course of a year the price of food rises 10%, the priceof clothing drops 5% and rent rises 15%, what is the average price increase experienced by these consumers?

Answered: Suppose a group of consumers spend 30%…

Suppose a group of consumers spend 30% of their disposable income on food, 20% on clothing, and 50% on rent. If over the course of a year the price of food rises 10%, the price of clothing drops 5% and rent rises 15%, what is the average price increase experienced by these consumers?

Advanced Engineering Mathematics

10th Edition

ISBN:9780470458365

Author:Erwin Kreyszig

Publisher:Erwin Kreyszig

Chapter2: Second-order Linear Odes

Section: Chapter Questions

Problem 1RQ

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Suppose a group of consumers spend 30% of their disposable income on food, 20% on

clothing, and 50% on rent. If over the course of a year the price of food rises 10%, the price

of clothing drops 5% and rent rises 15%, what is the average price increase experienced by

these consumers?