Question

If prize of tea is increase by20% find by how much percent must a householder reduce her consumption of tea so as not to increase the expenditure?

Answer 1

If A x B = constant

Increase of 1/x th part in A will lead to decrease of 1/(x + 1) th part in B.

Price x Quantity = Expenditure

=> Increase of 20% or 1/5 th in Tea price will lead to decrease of 1/6 th or 16 2/3 % in consumption of tea.