The price of a commodity increases by 28%. However, the expenditure on it increases by 12%. What is the percentage increase or decrease in its consumption?

12.5% Decrease

28% = \(\frac{7}{25}\) & 12% = \(\frac{3}{25}\)

Ratio of ,                 Initial      :      New

Price                         25         :        32

Consumption              a          :         b

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Expenditure              25          :          28

{ Expenditure = Price × Consumption }

 \(\frac{25 × a }{32 × b}\) =  \(\frac{25}{28}\)

 \(\frac{a}{b}\) =  \(\frac{8}{7}\)

Percentage decrease in consumption =  \(\frac{8-7}{8}\) × 100

=  \(\frac{1}{8}\) × 100

= 12.5%

Ans = Decrease in 12.5%