If the price of potatoes increases by 10%, then by how much percent does a user have to cut down on his consumption of potatoes so that the expenditure on potatoes remains unchanged?
Show answer & explanation
Correct answer: D
Explanation
The correct answer is Option 4 i.e. %.
Let, the price of potatoes be Rs.100
If the price of potatoes increases by 10%
The new price of potatoes = Rs.110
Change in expenditure = (110 - 100)/110 × 100
⇒ 10/110 × 100 = 100/11 = %