Rice is now being sold at ₹29 per kg. During the last month, its cost was ₹25 per kg. By how much percentage should a family reduce its consumption, so as to keep the expenditure the same as before? (correct to nearest integer)
Answer & explanation
Correct answer: option 1
Let initial consumption of Rice = X kg
Initial price = 25 Rs./kg
After increase , price = 29 Rs./kg
Final consumption = \(\frac{X}{29}\) × 25 = 0.862X kg
Reduced consumption = X - 0.862X = 0.138X kg
Required percentage = \(\frac{0.138X}{X}\) × 100% = 13.8%
= 14% (approx)