When the price of rice is increased by 17%, a family reduced its consumption in such a way that the expenditure on rice is only 5% more than before. If 58.5kg was consumed per month before, then the new consumption per month is:
Answer & explanation
Correct answer: option 2
Let price is 100 and consumption also 100.
Latest price is 100 +17 = 117 and consumption = 100 + 5 = 105.
Consumption has to reduce 117 - 105 = 12.
Now, out of 117, family has to reduce 12.
So, out of 58.5, family has to reduce \(\frac{12}{117}\) × 58.5 = 6.
New monthly consumption = 58.5 - 6 = 52.5 kg.