The price of rice increases by 30%. A family reduced its consumption so that the expenditure of the rice is up only by 10%. If the total consumption of the rice before the price rise was 10 kg per month, then the consumption of rice per month at present (in kg) is:
Answer & explanation
Correct answer: option 3
The correct answer is Option (3) → \(8\displaystyle\frac{6}{13}\)
Expenditure = price × consumption, so the new consumption is the new expenditure divided by the new price.
Assuming the old price to be 1 per kg:
Old expenditure = 1 × 10 = 10
New price = 1.30 per kg (up 30%)
New expenditure = 10 × 1.10 = 11 (up only 10%)
New consumption \(=\displaystyle\frac{11}{1.30}=\frac{110}{13}=8\frac{6}{13}\) kg