If the price of the commodity is increased by 50% by what fraction must its consumption be reduced so as to keep the same expenditure on its consumption?
Pick one
A) 1/4 B) 1/3 C) 1/2 D) 2/3 E) None
Solution: Let the initial price of the commodity be 100.   After 50% increase in price, It will become,   100 ------50% increase----&gt; 150.   Now, we have to reduce the consumption to keep expenditure 100.   Increase in price= 150 - 100= 
<gadget id="calculator">150 - 100</gadget>
<output>50</output>
50   We have to reduce the consumption,= (50/150)*100 = 1/3 or 33.33%   Other Method:   Here, we use, Final product constant graphic.   100 ==50% up== 150===33.33% down===&gt;100.   Consumption Reduce = 33.33% = 1/3.   Answer: Option 1/3
<result>B</result>
If the price of the commodity is increased by 50% by what fraction must its consumption be reduced so as to keep the same expenditure on its consumption?