The price of rice increased by 37.5%. By how much percent the consumption should be reduced so that expenditure does not change?
Answer & explanation
Correct answer: option 4
Price × Consumption = Expenditure
*(If expenditure remains same the price is inversely proportional to consumption)
Therefore,
37.5% = \(\frac{3}{8}\)
Price ratio: 8 : 11
Consumption: 11 : 8 ⇒ 3 (Reduced by)
Reduced percentage = \(\frac{3}{11}\) × 100% = 27\(\frac{3}{11}\)%