The problem can be solved using the concept of expenditure.

Expenditure is the product of price and quantity.

Let's assume the initial price of gold is $100 per gram and the man buys 1 gram of gold. So, his initial expenditure is $100.

According to the problem, the price of gold increases by 40%. So, the new price is $140 per gram.

The man can afford only a 20% increase in expenditure. So, his new expenditure is $120.

Now, we need to find the quantity of gold he can buy with $120 when the price is $140 per gram.

Quantity = Expenditure / Price = $120 / $140 = 0.857 gram.

So, the quantity of gold purchased has decreased from 1 gram to 0.857 gram.

The percentage decrease in quantity = (Initial quantity - New quantity) / Initial quantity * 100%

= (1 - 0.857) / 1 * 100% = 14.29%

So, the percentage decrease in the quantity of gold purchased by the man is 14.29%.

Therefore, the correct option is 14.29%.

Question

The problem can be solved using the concept of expenditure.

Expenditure is the product of price and quantity.

Let's assume the initial price of gold is $100 per gram and the man buys 1 gram of gold. So, his initial expenditure is $100.

According to the problem, the price of gold increases by 40%. So, the new price is $140 per gram.

The man can afford only a 20% increase in expenditure. So, his new expenditure is $120.

Now, we need to find the quantity of gold he can buy with $120 when the price is $140 per gram.

Quantity = Expenditure / Price = $120 / $140 = 0.857 gram.

So, the quantity of gold purchased has decreased from 1 gram to 0.857 gram.

The percentage decrease in quantity = (Initial quantity - New quantity) / Initial quantity * 100%

= (1 - 0.857) / 1 * 100% = 14.29%

So, the percentage decrease in the quantity of gold purchased by the man is 14.29%.

Therefore, the correct option is 14.29%.

Knowee AI · Accepted Answer