Question

“Equivalent income in the city you are moving to” and the “percentage decrease you can take in your salary to still maintain your standard of living”. What do these two sentences mean?

Answer 1

Answer:

The two sentences mean that the "Equivalent income" is the income you can receive in the new city.  The "percentage decrease" in salary to maintain your current living standard is the rate of decrease in salary.

Explanation:

For example, if your equivalent income in the new city is $45,000 and your current income is $50,000, and the percentage decrease in salary is 40%, it implies that your living standard may be below $45,000.  

Thus, at a salary of $45,000, you can still maintain your living standard with a salary of $30,000 ($50,000 x (1 - 0.4).