Question
Price of rice is increased by 25%. Find the percentage by
which consumption must be decreased so that expenditure on rice remains unchanged.Solution
ATQ,
Let the initial price and initial consumption of rice be Rs. '100m' per kg and 'n' kg respectively.
Initial expenditure = 100m × n = Rs. '100mn'
New price = 1.25 × 100m = Rs. '125m'
New consumption = (100mn / 125m) = (100n / 125) kg
Decrease in consumption = n - (100n / 125) = (25n / 125) kg
Required percent = [(25n / 125) ÷ n] × 100 = (2500 / 125) = 20%
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