The price of rice increased by 10%. By how much should we reduce the consumption, so that the expenditure does not increase on rice?
Answer & explanation
Correct answer: option 1
To keep the expenditure on rice constant,
Ratio of consumption ∝ $\frac{1}{ratio\; of\; price}$
Original : New
Price of rice 100 : 110
Consumption 110 : 100
Percentage decrease in consumption = \(\frac{10}{110}\) x 100
= 100/11%