If the price of an article increases by 50%, then quantity bought at same price decreases by?

In economics, the relationship between the price of a good and the quantity demanded is often inversely proportional. This means that as the price of a good increases, the quantity that can be bought with a fixed budget decreases. This concept is fundamental to understanding consumer behavior and market dynamics.

Let's consider the scenario where the price of an article increases by 50%. If the original price of the article is \( P \), the new price becomes \( 1.5P \). Suppose the initial quantity that could be bought with a fixed budget \( B \) is \( Q \). The relationship between price and quantity can be expressed as:

\[ \text{Initial Condition: } P \times Q = B \]

After the price increase, the new quantity \( Q' \) that can be bought with the same budget \( B \) is given by:

\[ 1.5P \times Q' = B \]

Since the budget \( B \) remains the same, we can equate the two expressions:

\[ P \times Q = 1.5P \times Q' \]

Dividing both sides by \( P \) and \( 1.5 \), we get:

\[ Q' = \frac{Q}{1.5} = \frac{2}{3}Q \]

This means the new quantity \( Q' \) is \( \frac{2}{3} \) of the original quantity \( Q \). The decrease in quantity is therefore:

\[ Q - Q' = Q - \frac{2}{3}Q = \frac{1}{3}Q \]

Expressing this as a percentage, the decrease is:

\[ \frac{1}{3} \times 100\% = 33.33\% \]

Thus, when the price of an article increases by 50%, the quantity that can be bought with the same budget decreases by 33.33%. This inverse relationship is a key concept in economics and helps in understanding how changes in price affect consumer purchasing power.