The price of rice is increased by 2\(\frac{1}{2}\)%. Find by how much percent a man reduces his consumption so as not to increase his expenditure?
Answer & explanation
Correct answer: option 2
Price × Consumption = Expenditure
*(If expenditure remains same the price is inversely proportional to consumption)
Therefore,
2\(\frac{1}{2}\)% = \(\frac{1}{40}\)
Price ratio: 40 : 41
Consumption: 41 : 40 ⇒ 1 (decreased by)
Hence,
Decreased percentage = \(\frac{1}{41}\) × 100% = 2\(\frac{18}{41}\)%