Question

The price of onions has increased by 40%.By what per cent must a consumer reduce the consumption of the commodity so not to increase the expindeture

Answer 1

Let's assume that the consumption is 1 kg
and the price of the onion is Rs 100 /kg.

Amount spent = Rs 100

New price of onion = Rs 140 after increase in price
Customer has to spend only Rs 100

Let's assume that amount consumed by the customer is 'x'
So,
140 * x = 100
or, x = 100/140 = 5/7 kg

Change in the quantity of onions consumed -
1 - 5/7 = 2/7 kg

Change in % =
((2/7) / 1 ) * 100
200/7
~ 28.6 %