Question

the price of desi ghee has increased by 25%. by what percent should a family reduce the consumption of desi ghee so as not to increase the expenditure in this account? (a) 16% (b) 18% (c) 24% (d) 20%

Answer 1

To not increase expenditure due to a 25% price increase, the desi ghee consumption should be reduced by 20%. This is calculated using the percent decrease formula.

Step-by-step explanation:

The question you asked pertains to percent decrease. If the price of desi ghee increases by 25%, and the family wants to maintain the same expenditure on desi ghee, they will need to reduce their consumption. The formula we use for this is: New Quantity = Old Quantity * (1 – Reduction Percentage). Therefore, Reduction Percentage = (Old Quantity – New Quantity) / Old Quantity

The Old Quantity can be represented by 100%. Considering the price increase, your new expenditure for the same 100% quantity is now 125% of your budget. If you want to fit into your original budget of 100%, the reduction percentage would be: (125–100)/125=20%. Hence, the family should decrease their consumption of desi ghee by 20% to stay within their original budget, so the correct answer is (d) 20%.

Learn more about Percent Decrease