The price of onion increases by 12.5%. The consumption of onion also increases by 12.5%. What is the approximate percentage increase in the expenditure on account of the purchase of onions?

26.56%

12.5% = \(\frac{1}{8}\)

Ratio of     

Price                 8    :     9

Consumption     8    :     9

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Expenditure     64    :     81

{ Expenditure = Price × Consumption }

Increased percentage = \(\frac{81 - 64}{64}\) × 100

= \(\frac{17}{64}\) × 100

= 26.56%