The price of a commodity is decreased by 25 percent and therefore a household increased the consumption of that commodity by 20 kg to keep the expenditure same. What was the earlier consumption ?
Answer & explanation
Correct answer: option 1
Price decreased by 25% = \(\frac{1}{4}\)
initial final
Price 4 : 3
quantity 3 : 4 (Price ∝ \(\frac{1}{Qty.}\))
ATQ ,
1R = 20 kg
3R = 20 × 3 = 60 kg