Study the given pie chart that represents the percentage population of six villages A, B, C, D, E and F in 2020, and answer the question that follows.
|
Village |
Percentage of populatio below poverty line |
| A | 30 |
| B | 45 |
| C | 55 |
| D | 60 |
| E | 58 |
| F | 40 |
When the price of rice increases by 25%, a person increases his expenditure on rice only by 15%. By what percentage should he reduce his consumption of rice so as to be able to maintain the same level of expenditure?
Show answer & explanation
Correct answer: C
Explanation
The correct answer is option 3 i.e. 8%.
Percentage = [1 - (1 + Expenditure Increase %)/(1 + Price Increase %)] × 100
= [1 - (1.15/1.25)] × 100
= (1 - 0.92) × 100
= 8%