Discussion

Explanation:

Let the original price of gold/unit is p Rs./unit

Let q be the quantity purchased in units

Let e be the expenditure incurred

Thus, e = p × q

When price increases by 30% i.e., 1.3p

Then new quantity purchased q’ units be such that,

1.3pq’ = p × q 

q' = q/1.3 ≈ 77% of q.

∴ reduction in q must be 23% = $23\frac{1}{13}\%$

Hence, option (b).

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