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The price of wheat has increased by 25 %...

The price of wheat has increased by `25 %.` Find the reduction in consumption so that there is no change in the expenditure.

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To solve the problem of finding the reduction in consumption of wheat due to a 25% increase in its price while keeping the expenditure constant, we can follow these steps: ### Step-by-Step Solution: 1. **Understand the Initial Situation**: - Let the initial price of wheat be `100` (this is a hypothetical value for simplicity). - Let the initial quantity of wheat consumed be `1 unit`. - Therefore, the initial expenditure is: \[ \text{Expenditure} = \text{Price} \times \text{Quantity} = 100 \times 1 = 100 \] **Hint**: Start by defining the initial price and quantity to establish a baseline for calculations. 2. **Calculate the New Price After Increase**: - The price of wheat has increased by `25%`. - The new price can be calculated as: \[ \text{New Price} = \text{Old Price} + \left(\frac{25}{100} \times \text{Old Price}\right) = 100 + 25 = 125 \] **Hint**: To find the new price after a percentage increase, add the percentage of the old price to the old price. 3. **Determine the New Quantity that Can Be Bought with the Same Expenditure**: - We want to find out how much quantity can be bought with the same expenditure of `100` at the new price of `125`. - The new quantity can be calculated as: \[ \text{New Quantity} = \frac{\text{Expenditure}}{\text{New Price}} = \frac{100}{125} = \frac{4}{5} \text{ units} \] **Hint**: To find the new quantity, divide the total expenditure by the new price. 4. **Calculate the Reduction in Consumption**: - The reduction in consumption can be calculated as: \[ \text{Reduction} = \text{Initial Quantity} - \text{New Quantity} = 1 - \frac{4}{5} = \frac{1}{5} \text{ units} \] **Hint**: The reduction in consumption is simply the difference between the initial quantity and the new quantity. 5. **Calculate the Percentage Reduction in Consumption**: - To find the percentage reduction in consumption, use the formula: \[ \text{Percentage Reduction} = \left(\frac{\text{Reduction}}{\text{Initial Quantity}}\right) \times 100 = \left(\frac{\frac{1}{5}}{1}\right) \times 100 = 20\% \] **Hint**: To express the reduction as a percentage, divide the reduction by the initial quantity and multiply by 100. ### Final Answer: The reduction in consumption should be `20%` to maintain the same expenditure after the price increase.
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