The price of an item increased by 10%. Anil planned to increase the expenditure on it by 5%. By what percentage must its consumption be reduced so that the expenditure on it is met within the increased amount allocated for it?
Show answer & explanation
Correct answer: D
Explanation
The correct answer is Option 4 i.e. %.
Let original price = 100, and original consumption = 1 unit
Original expenditure = 100 × 1 = 100
Price increased by 10% → New price = 110
Expenditure increased by 5% → New expenditure = 105
New consumption = =
Consumption reduced = (1 - ) × 100 = × 100 = %