Question : The price of a commodity is decreased by 25 percent and therefore a household increases the consumption of that commodity by 20 kg to keep the expenditure same. What was the earlier consumption?
Option 1: 60 kg
Option 2: 55 kg
Option 3: 75 kg
Option 4: 45 kg
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Correct Answer: 60 kg
Solution :
Original price = Rs. 100 per kg
Original consumption = $x$ kg
After a decrease of 25%,
New price = Rs. 75 per kg
New consumption = $x$ + 20 kg
Original expenditure = 100$x$
New expenditure = $75\times(x + 20) = 75x + 1500$
Since the expenditure is the same, we have $100x = 75x + 1500$
⇒ $25x = 1500$
$\therefore x$ = 60 kg
Hence, the correct answer is 60 kg.
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