Question

The price of rice increase by 40%, but a family reduce its consumption of rice by 40%. How much expenditure of the family on rice will decrease.
​

Answer 1

Answer:

nothing he will gain nor he will lose.

Answer 2

Answer:

16%

Step-by-step explanation:

let price of rice = x

let family consumption = y

so

expenditure = xy

current condition

price of rice = (1.4x)(0.6y) = 0.84xy

this shows decrease in expenditure

(xy-0.84xy)/xy

=0.16xy/xy

=0.16

=16%