Question

The price of milk increased to 20% then how much should the consumption be reduced to maintain the monthly expenditure on milk?
1. \(16\frac{2}{3}\)%
2. \(48\frac{2}{3}\)%
3. \(16\frac{1}{3}\)%
4. \(48\frac{1}{3}\)%

Answer 1

Correct Answer - Option 1 : \(16\frac{2}{3}\)%

Given:

Price of milk = Increased 20%

Formula used:

Reduction in consumption to maintain the expenditure is (r/(100 + r)) × 100%

Calculations:

Reduction in consumption of milk = (20/(100 + 20)) × 100

⇒ (20/120) × 100 = \(16\frac{2}{3}\)%

∴ Reduction in consumption of milk is \(16\frac{2}{3}\)%