If the price of tea increases by 20%, by what percent should the consumption of tea be reduced so that the expenditure on tea does not increase?
Show answer & explanation
Correct answer: B
Explanation
The correct answer is Option 2 i.e. %.
Let the price of the tea be Rs. 100
The price of the tea after increment = Rs. 120
Required percentage = [(120 - 100)/120] × 100 = 20/120 × 100 = %