Question

The total consumption of rice is 20 kg per month for a family. As the price of rice increases by 35%, the family reduces its consumption so that the expenditure of rice is increased only by 8%. What is the new consumption (in kg) of rice per month due to the increases in the price of rice?
1. 18
2. 14
3. 16
4. 12

Answer 1

Correct Answer - Option 3 : 16

Given:

The total consumption of rice per month = 20 kg

The price of rice increases by 35%.

After reducing the consumption so the expenditure on rice is increase by 8%.

Calculation: 

Let the new consumption (in kg) of rice per month due to the increases in the price of rice = x

Let the price of 1 kg of rice is Rs 100.

The total price of 20 kg of rice = Rs. 2,000

Total price increased per month = 2000 × 108%

⇒ 2160

The price increased per kg of rice = 100 × 135%

⇒ 135

after then,

⇒ 2160 = (x × 135)

⇒ x = 16

∴ The new consumption (in kg) of rice per month due to the increases in the price of rice is 16.