The price of rice increased by 10%, By how much should we reduce the consumption so that the expenditure does not increase on rice?
Show answer & explanation
Correct answer: A
Explanation
The correct answer is option 1 i.e. 100/11%.
Let's assume the initial price of the rice = 100
So, after a 10% increase in price, the new price of rice = 100 × 110/100 = 110
According to the question,
Required percentage = (New price - Initial price)/New price × 100
= (110 - 100)/110 × 100
= 100/11%