Question 83

If the price of onion increases from Rs 24/kg to Rs 36/kg, then by what percentage a household should decrease the consumption of onion so that expenditure remains same?

Solution

Let initial consumption = $$x$$ kg and price = Rs. 24

=> Expenditure = Rs. $$24x$$

Let consumption after increase in prices = $$y$$ kg, => Expenditure = Rs. $$36y$$

According to ques,

=> $$24x=36y$$

=> $$\frac{x}{y}=\frac{36}{24}=\frac{3}{2}$$

Let $$x=3$$ and $$y=2$$

$$\therefore$$ Percentage a household should decrease the consumption = $$\frac{(x-y)}{x}\times100$$

= $$\frac{3-2}{3}\times100=33.33\%$$

=> Ans - (B)


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