Question

The price of onion increased by 12 %. By how much % you should reduce your consumption at home so that your expenditure on onion does not increase?

Answer 1

Let the price before increase be 100

Increased price =25percent of 100

25/100*100+100=125

When the price is increased to 125 she has to reduce 25

When the price is increased to 1 she has to reduce 25/125

Rate by which consumption decreases=25/125*100

=20 percent

Therefore she has to reduce 20percent consumption of onion so that there will be no change in her expenditure