the price of wheat is increased by 25%. by what percentage should the consumption be reduced so that the expenditure on wheat remains the same please do answer its urgent thanks in advance
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If the price of wheat is increased by 25% , then the consumption should be reduced by 20% so that the expenditure remains the same.
- Let the cost of wheat and the consumption be x and y respectively.
Now, the total expenditure on wheat will be x×y.
- Now the price of wheat is increased by 25%.
The price of wheat will be 1.25%.
- We have to find the consumption of wheat so that the expenditure remains the same.
- Let us assume the consumption to be k.
- Therefore,
x × y = 1.25x × k
k = y/1.25
k = (0.8)y
- The consumption when the price is increased is 0.8y.
- The percentage reduction in the consumption of wheat = × 100
The percentage reduction in the consumption of wheat = 20%
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