A recent survey of tourists to Hawaii indicated that the average tourist spends 25% of their vacation budget on food and lodging, 10% on souvenirs and 65% on entertainment. If over the course of...
A recent survey of tourists to Hawaii indicated that the average tourist spends 25% of their vacation budget on food and lodging, 10% on souvenirs and 65% on entertainment. If over the course of the year the price of food and lodging dropped 17%, the price of souvenirs dropped 8% and the price of entertainment rose 15%, what was the average price increase experienced by the tourists?
Round your final answer properly to two decimal places, if applicable.
Let's imagine that we have an average tourist who spends $100 on his trip.
This means $65 for entertainment, $25 for food, and $10 for souvenirs.
We can find out prices for the next year by multiplying by the percentages.
Entertainment will go up by `65*0.15=9.75`
Food will go down by `25*0.17=4.25`
Loding will go down by `10*0.08=0.8`
The net change is `9.75-4.25-.8 = 4.7`
To find the percent change, divide change by original amount and multiply by one hundred:
`4.7/100 *100 = 4.7%`
Let total expence be x .
food and lodge = .25x
After dropped / increase price
food and lodge=.25x- (.17)(.25)x=.2075x
souvenirs= .1x - (.08)(.1x)=.092x
now total expence=1.047x
increased price = 1.047x-x=.047x
So percetage increase in price=`(.047x xx 100)/x`
The average price increase experienced by the tourists is 4.7%