If the price of rice is raised by 20%, then by what percentage should a person reduce his consumption of rice so that his expenditure remains the same? (correct to one decimal place)
Show answer & explanation
Correct answer: C
Explanation
The correct answer is option 3 i.e. 16.7%
The price of rice increases by 20%.
Percentage of the capacity of rice decreases,
⇒ {(X)/(100 +X)} × 100
⇒ {(20)/(100 + 20)} × 100
⇒ {20/120} × 100
⇒ 1/6 × 100
⇒ 16.7%
∴ The capacity of rice decreases by 16.7%.