Question

In the new budget, the price of pulses is increased by 12%.By how much percent must one reduce consumption so that the expenditure does not increase?

Answer 1

Given that the price of pulses is increased by 12%.

Then the decrease in consumption = (12/100 + 12) * 100

                                                            = (12/112) * 100

                                                            = 10.7

                                                            = ~11

The pulses consumption should reduce by 10.7 or 11 percent so that the expenditure does not increase.