When the price of rice is increased by 28%, a family reduced its consumption in such a way that the expenditure on rice is only 20% more than before. If 48 kg was consumed per month before, then the new consumption per month is:
Answer & explanation
Correct answer: option 2
Let price is 100 and consumption also 100.
Latest price is 100 +28 = 128 and consumption = 100 + 20 = 120.
Consumption has to reduce 128 - 120 = 8.
Now, out of 128, family has to reduce 8.
So, out of 48, family has to reduce \(\frac{8}{128}\) × 48 = 3.
New monthly consumption = 48 - 3 = 45