The price of rice is increased by 14\(\frac{2}{7}\)%. Find by how much percent a man reduces his consumption so as not to increase his expenditure?
Answer & explanation
Correct answer: option 4
Price × Consumption = Expenditure
*(If expenditure remains same the price is inversely proportional to consumption)
Therefore,
14\(\frac{2}{7}\)% = \(\frac{1}{7}\)
Price ratio: 7 : 8
Consumption: 8 : 7 ⇒ 1 (decreased by)
Hence,
Decreased percentage = \(\frac{1}{8}\) × 100% = 12\(\frac{1}{2}\)%