Multiple choice

If the price of ice cream increases by a quarter and Vaibhav intends to spend only an additional fifteen percent on it, by how much percentage will he reduce the quantity of ice cream purchased?

  1. 10%

  2. 12%

  3. 8%

  4. 6.67%

  5. None of these
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

Let the initial price be P and quantity be Q. The new price is 1.25P, and the new expenditure is 1.15PQ. The new quantity purchased is 1.15PQ / 1.25P = 0.92Q, which represents an 8% reduction in quantity.

AI explanation

If the price increases by a quarter, the new price is 125% of the original price, and with a 15% increase in expenditure, the new expenditure is 115% of the original. The ratio of the new quantity to the old quantity is the new expenditure divided by the new price, which is 115 divided by 125, equaling 0.92. This means he purchases 92% of the original quantity, resulting in an 8% reduction in the quantity purchased.

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