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If the price of onion increases from Rs....

If the price of onion increases from `Rs. 24` per/kg to `Rs36` per/kg, then by what percentage a household should decrease the consumption of onioon so that expenditure remains same ?

A

`25`

B

`33.33`

C

`50`

D

`20`

Text Solution

AI Generated Solution

The correct Answer is:
To solve the problem of how much a household should decrease the consumption of onions to keep their expenditure the same after the price increase, we can follow these steps: ### Step-by-Step Solution: 1. **Identify the Initial and New Prices**: - Initial price of onions = Rs. 24 per kg - New price of onions = Rs. 36 per kg 2. **Calculate the Increase in Price**: - Increase in price = New price - Initial price - Increase in price = Rs. 36 - Rs. 24 = Rs. 12 3. **Calculate the Ratio of the Prices**: - The ratio of the new price to the old price = New price / Initial price - Ratio = Rs. 36 / Rs. 24 = 3 / 2 4. **Determine the Consumption Adjustment**: - If the price increases, the consumption must decrease to keep the expenditure the same. - If the price ratio is 3:2, then the consumption must be adjusted inversely. - Therefore, the new consumption ratio = Old consumption / (New price / Old price) = 2 / 3 of the original consumption. 5. **Calculate the Percentage Decrease in Consumption**: - The decrease in consumption = Original consumption - New consumption - Decrease = Original consumption - (2/3) * Original consumption - Decrease = (1/3) * Original consumption - To find the percentage decrease: - Percentage decrease = (Decrease / Original consumption) * 100 - Percentage decrease = [(1/3) * Original consumption / Original consumption] * 100 - Percentage decrease = (1/3) * 100 = 33.33% ### Final Answer: The household should decrease the consumption of onions by **33.33%** to keep their expenditure the same. ---
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