The price of rice is decreased by 10%. Find by how much percent a man should increases his consumption so that the expenditure remains same?
Answer & explanation
Correct answer: option 1
Price × Consumption = Expenditure
*(If expenditure remains same the price is inversely proportional to consumption)
Therefore,
10% = \(\frac{1}{10}\)
Price ratio: 10 : 9
Consumption: 9 : 10 ⇒ 1 (increased by)
Hence,
Increased percentage = \(\frac{1}{9}\) × 100% = 11\(\frac{1}{9}\)%