Question
If the price of a rice bag is reduced by (50/3)%, by
what percentage should a family increase its consumption of rice bags to ensure that their total expenditure on rice remains unchanged?Solution
ATQ,
Let initial price of rice bag be Rs. 100 per kg and initial consumption be 1 kg
So, initial total expenditure = Rs. 100
Reduced price of rice bag = {100 – (100/6)} = Rs. (500/6)
So, new consumption = {100/(500/6)} = (6/5)kg
Therefore, percentage increased = [{(6/5) – 1}/1] × 100 = 20%
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