When the price of a commodity increased by 23%, a family reduced its consumption in such a way that the expenditure on it was only 5% more. By what percentage has the family reduced the consumption of the commodity (correct to one decimal place)?
- A14.2%
- B15.2%
- C15.8%
- D14.6%
Solution & Step-by-step Explanation
Let initial Price = 100 and initial Consumption = 100.
Initial Expenditure = 100×100=10000.
New Price = 123.
New Expenditure is 5% more = 10000×1.05=10500.
New Consumption=
New Price
New Expenditure
=
123
10500
≈85.36
Percentage reduction in consumption:
Reduction=100−85.36=14.64%≈14.6%
Initial Expenditure = 100×100=10000.
New Price = 123.
New Expenditure is 5% more = 10000×1.05=10500.
New Consumption=
New Price
New Expenditure
=
123
10500
≈85.36
Percentage reduction in consumption:
Reduction=100−85.36=14.64%≈14.6%