Due to an increase of 20 percent in the price of rice, the consumer decreases his consumption by 5 percent. What is the percentage change in total expenditure?

14 percent

20% = \(\frac{1}{5}\)

5% = \(\frac{1}{20}\)

ATQ ,

Price                 5     :    6

Consumption     20   :    19

Expenditure      a     :     b

{ Price × Consumption = Expenditure }

Now ,

\(\frac{5×20 }{6 × 19}\) = \(\frac{a}{b}\)

\(\frac{a}{b}\) = \(\frac{100}{114}\)

Expenditure increases by = 114  - 100 = 14

Decreased percentage = \(\frac{14}{100}\) × 100 = 14%