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In Dew government policy, the price of o...

In Dew government policy, the price of onion is raised by 35%. By what percentage should a person reduce onion consumption so that the expenditure on it does not increase?
A. `25%`
B. `29%`
C. `26%`
D. `33%`

A

B

B

A

C

D

D

C

Text Solution

AI Generated Solution

The correct Answer is:
To solve the problem step by step, we need to determine by what percentage a person should reduce onion consumption to keep the expenditure constant after a 35% increase in the price of onions. ### Step-by-Step Solution: 1. **Understanding the Price Increase**: - Let the original price of onions be \( P = 100 \) (for simplicity). - After a 35% increase, the new price \( P' \) becomes: \[ P' = P + 0.35P = 100 + 35 = 135 \] 2. **Setting Up the Expenditure Equation**: - Let the original quantity of onions consumed be \( Q \). - The original expenditure \( E \) on onions is given by: \[ E = P \times Q = 100 \times Q \] - After the price increase, if the new quantity consumed is \( Q' \), the new expenditure \( E' \) is: \[ E' = P' \times Q' = 135 \times Q' \] 3. **Equating the Expenditures**: - To keep the expenditure the same, we set \( E = E' \): \[ 100Q = 135Q' \] 4. **Finding the New Quantity**: - Rearranging the equation gives: \[ Q' = \frac{100Q}{135} \] - Simplifying this, we find: \[ Q' = \frac{20Q}{27} \] 5. **Calculating the Reduction in Consumption**: - The reduction in consumption \( R \) is: \[ R = Q - Q' = Q - \frac{20Q}{27} \] - This can be simplified to: \[ R = \frac{27Q}{27} - \frac{20Q}{27} = \frac{7Q}{27} \] 6. **Finding the Percentage Reduction**: - The percentage reduction in consumption is given by: \[ \text{Percentage Reduction} = \left(\frac{R}{Q} \times 100\right) = \left(\frac{\frac{7Q}{27}}{Q} \times 100\right) = \frac{7}{27} \times 100 \] - Calculating this gives: \[ \frac{700}{27} \approx 25.92\% \] 7. **Rounding Off**: - Rounding \( 25.92\% \) gives approximately \( 26\% \). ### Conclusion: The percentage by which a person should reduce onion consumption to keep the expenditure constant after a 35% price increase is approximately **26%**.
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