The price of tomato increases by 10%. The consumption of tomato decreases by 15%. What is the percentage change in the expenditure on tomatoes?
Answer & explanation
Correct answer: option 3
10% = \(\frac{1}{10}\) & 15% = \(\frac{3}{20}\)
Ratio of , Initial : New
Price 10 : 11
Consumption 20 : 17
-------------------------------------------------------
Expenditure 200 : 187
{ Expenditure = Price × Consumption }
Percentage decrease in Expenditure = \(\frac{200 - 187}{200}\)×100
= \(\frac{13}{200}\)×100
= 6.5% decrease