The price of tomatoes increases by 10%. The consumption of tomatoes decreases by 15%. What is the percentage change in the expenditure on tomatoes?
Show answer & explanation
Correct answer: C
Explanation
The correct answer is option 3 i.e. 6.5% decrease.
Let the price of tomato = Rs 100
Let the consumption = 100 kg
Total expenditure = 100 × 100 = Rs 10000
After the increase, The price of tomato = Rs 110
The consumption after the increase in the price = 85 kg
The expenditure = 110 × 85 = Rs 9350
Decrease in the expenditure = 10000 - 9350 = Rs 650
Percentage decrease = (650/10000) × 100 = 6.5%