Question
The cost of rice has gone up by 25%. By what percent should
a person reduce their rice intake so that their total spending on rice remains unaffected?Solution
ATQ,
Initial price = Rs. 100m, consumption = n kg
Initial expenditure = 100mn
New price = 125m
New consumption = 100mn ÷ 125m = 100n ÷ 125 kg
Decrease in consumption = n - (100n ÷ 125) = 25n ÷ 125
Required percent = (25n ÷ 125) ÷ n × 100 = 2500 ÷ 125 = 20%
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