The price of onions increases by 25%, by what percent should a housewife reduces the consumption so that expenditure on onions can be same as before?
Answers: A) 14.28 B) 16.66 C) 20 D) 25 E) 33.33
Expenditure = Consumption * Price = CP   Now the price increases by 25% =&gt; Expenditure = C * (1.25P)   Let C1 be the new consumption such that the expenditure remains the same.   C* P = C1 * (1.25P)   C1 = 0.8 C   20% reduction in consumption is needed.   ANSWER:20
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The price of onions increases by 25%, by what percent should a housewife reduces the consumption so that expenditure on onions can be same as before?