Question

If the price of tea rises by 20%, then by how much percent does a house wife reduce her consumption so that her expenditure remains same?

• A. 20%
• B. $12\frac{1}{2}$%
• C. $\frac{50}{3}$%
• D. $\frac{50}{6}$%

Answer 1

The correct option is C $\frac{50}{3}$%

Let the tea price be Rsx
Now increasd price=$x+\frac{20}{100}\times x=\frac{6x}{5}$
In order to restore,
$\frac{6x}{5}-x\times \frac{5}{6x}\times 100$
$\frac{6x-5x}{5}\times \frac{5}{6x}\times 100$
$\frac{x}{5}\times \frac{5}{6x}\times 100$
$\frac{100}{6}=\frac{50}{3}$%