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Question : If the price of rice is raised by 25%, the percentage by which a house holder must reduce his consumption of rice so as not to increase his expenditure on rice is:

Option 1: 225%

Option 2: 25.75%

Option 3: 25%

Option 4: 20%


Team Careers360 18th Jan, 2024
Answer (1)
Team Careers360 20th Jan, 2024

Correct Answer: 20%


Solution : The price of rice is raised by 25%.
If the consumption remains the same then expenditure will be increased by 25%.
So, the percentage by which a house holder must reduce his consumption of rice so as not to increase his expenditure on rice $=\frac{25}{125} × 100 = 20$%
So, the householder must reduce his consumption of rice by 20%.
Hence, the correct answer is 20%.

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