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?
Answer & explanation
Correct answer: option 4
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%