Question

If prizes are increased by 25% , by how much should i reduce the consumption to keep the expenditure same??

Answer 1

As we can say that the product of consumption of prizes and expenditure is going to be constant, let's proceed as :

Let's follow the following notation:

x : prize ; x' :New Prize

y: consumption; y': New Consumption

Now, According to question:

x*y=k(constant)

Now,

x' * y' =k(constant)

=> 1.25x * y' = x * y (  since x' =1.25x according to the question)

=> y' = 0.8 y

Hence the new consumption is 80% of the previous consumption.

i.e the consumption needs to be reduced by 20%.