If the price of rice is raised by 20%, then by what percentage should a person reduce his consumption of rice so that his expenditure remains the same? (correct to one decimal place)
Answer & explanation
Correct answer: option 3
Price ∝ \(\frac{1}{Consumption}\)
20% = \(\frac{1}{5}\)
Ratio of , Initial : New
Price 5 : 6
Consumption 6 : 5
Reduced percentage of Consumption = \(\frac{1}{6}\) × 100 = 16.7%