Multiple choice

The price of flour has come down by 30%. By what percentage will the consumption have to increase so that the expenditure remains the same?

  1. $42.85%$
  2. $53.67%$
  3. $44.68%$
  4. $39.75%$
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

Original price = P, reduced price = 0.7P. For expenditure E = P × consumption to remain constant: new consumption must be E/0.7P = P/0.7P = 1/0.7 ≈ 1.4286. This is a 42.86% increase. Formula: % increase = (% decrease/(100 - % decrease)) × 100 = (30/70) × 100 ≈ 42.86%.

Keep practicing — related questions