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Price of a commodity has increased by 60%. By what per cent must a consumer reduce the consumption of the commodity so as not to increase the expenditure ?
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- 35.5 %
- 37.5 %
- 38.5 %
- 25%
Correct Option: B
Let the price of commodity be ₹ x per kg.
Increase in price = 60%
∴ Increased price of 1 kg = ₹ 1.6x
If ₹ 1.6x is price of 1 kg
| x is price of | = | kg | ||
| (1.6)x | 16 |
∴ In order to keep the expenditure same, consumption should be reduced by
| 1 – | = | = | kg | |||
| 16 | 16 | 16 |
Percentage reduction in consumption
| = | × 100 = | = 37.5% | ||
| 16 | 2 |
