The price of rice is increased by 20%. Find by how much percent a man reduces his consumption so as not to increase his expenditure?
Answer & explanation
Correct answer: option 2
Price × Consumption = Expenditure
*(If expenditure remains same the price is inversely proportional to consumption)
Therefore,
20% = \(\frac{1}{5}\)
Price ratio: 5 : 6
Consumption: 6 : 5 ⇒ 1 (decreased by)
Hence,
Increased percentage = \(\frac{1}{6}\) × 100% = 16\(\frac{2}{3}\)%