When the price of rice is increased by 32%, a family reduced its consumption in such a way that the expenditure on rice is only 10% more than before. If 30 kg was consumed per month before, then the new consumption per month is:
Answer & explanation
Correct answer: option 1
Let price is 100 and consumption also 100.
Latest price is 100 +32 = 132 and consumption = 100 + 10 = 110.
Consumption has to reduce 132 - 110 = 22.
Now, out of 132, family has to reduce 22.
So, out of 30, family has to reduce 22/132 * 30 = 5.
New monthly consumption = 30 - 5 = 25