If the price of tea is increased by 40%, by how what percentage must the consumption of tea be decreased so as not to increase the expenditure?
Show answer & explanation
Correct answer: D
Explanation
The correct answer is option 4 i.e. %.
Expenditure = Price × Consumption
Let the original price be ₹100
So, the new price = ₹140
Let Original Consumption = 1 unit
Here, 100 × 1 = 140 × New Consumption
⇒ New Consumption = 100/140 = 5/7
Decrease in Consumption = 1 - (5/7) = 2/7
Percentage decrease = (2/7) × 100 = %
Therefore, the consumption of tea should be decreased by %.