Question

The price of a vegetable increases by 30%. If the expenditure has to be maintained at the original level, then the reduction in consumption in percentage has to be:
1. 40.5%
2. 23.0%
3. 38.5%
4. 42.5%

Answer 1

Correct Answer - Option 2 : 23.0%

Given:

The price of vegetable increased by 30%

Calculation:

Let be assume the price of vegetable is x and consumption before increment is y₁ and after increment is y₂

⇒ Expenditure = y₁ × x ... (1)

⇒ Expenditure = y₂ × (130x/100) = y₂ × 1.3x

⇒ y₁ × x = y₂ × 1.3x

⇒ y₂/y₁ = x/1.3x  = 10/13

⇒ The reduction = (3/13) × (100) = 23.07%

∴ The required result will be 23.07%.