Multiple choice

If the price of an article is increased by 20%, by what percentage should its consumption be decreased by a family if the family's expenditure is increased by 8%?

  1. 8%

  2. 10%

  3. 20%

  4. 15%

  5. 5%
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

Let original price = 100, consumption = 100 units. New price = 120. New expenditure = 108. New consumption = 108/120 = 0.9 of original. Percentage decrease = (1 - 0.9) x 100 = 10%. The consumption must decrease by 10% to keep expenditure increase at only 8%.

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