When the price of rice is increased by 32%, a family reduces its consumption so that its expenditure on rice is only 10% more than before. If the family consumed 30 kg a month before, what is its new consumption per month?
Answer & explanation
Correct answer: option 1
The correct answer is Option (1) → 25 kg
Expenditure \(=\) price \(\times\) consumption, so the new consumption is the new expenditure divided by the new price.
Take the old price as Rs 1 per kg, so the old expenditure \(=\) Rs 30
New price \(=\) Rs 1.32 per kg, new expenditure \(=1.1\times30=\) Rs 33
New consumption \(\displaystyle =\frac{33}{1.32}=25\) kg
The new consumption is 25 kg a month.