If the price of salt decreases by 20%, then by what percentage should consumption be increased to keep the expenditure same?
Show answer & explanation
Correct answer: C
Explanation
The correct answer is Option 3 i.e. 25%.
Concept used:
If expenditure remains same, price and consumption are inversely proportional to each other.
Calculations:
Using the above concept;
Ratio between the old price and new price = 100 : 80 = 5 : 4
So, ratio between the old consumption and new consumption = 4 : 5
Required percent increase = (1/4) × 100 = 25%