The price of coffee is increased by `15%` and a house wife reduced her consumption of coffee by `15%` and hence her expenditure on coffee__

Options

A. Remains unchanged
B. Increase by `1%`
C. Decreases by `4%`
D. Decreases by `2.25%`

Answer

To solve the problem step by step, we can follow these calculations:

### Step 1: Assume the Initial Price and Consumption
Let's assume the initial price of coffee is Rs 100 and the initial consumption is 1 kg (for simplicity).

**Hint:** Start by assigning a base value to the price and quantity to make calculations easier.

### Step 2: Calculate the New Price After Increase
The price of coffee is increased by 15%.
- New Price = Initial Price + (15% of Initial Price)
- New Price = 100 + (15/100 * 100) = 100 + 15 = Rs 115

**Hint:** Remember that a percentage increase means you add that percentage of the original value to the original value.

### Step 3: Calculate the New Consumption After Reduction
The housewife reduces her consumption of coffee by 15%.
- New Consumption = Initial Consumption - (15% of Initial Consumption)
- New Consumption = 1 - (15/100 * 1) = 1 - 0.15 = 0.85 kg

**Hint:** A percentage decrease means you subtract that percentage of the original value from the original value.

### Step 4: Calculate the New Expenditure
Now, we calculate the new expenditure based on the new price and new consumption.
- New Expenditure = New Price * New Consumption
- New Expenditure = 115 * 0.85 = Rs 97.75

**Hint:** Expenditure is calculated by multiplying the price by the quantity consumed.

### Step 5: Compare the New Expenditure with the Initial Expenditure
The initial expenditure was:
- Initial Expenditure = Initial Price * Initial Consumption
- Initial Expenditure = 100 * 1 = Rs 100

Now, we compare the initial and new expenditures:
- Change in Expenditure = New Expenditure - Initial Expenditure
- Change in Expenditure = 97.75 - 100 = -2.25

This indicates that the expenditure has decreased by Rs 2.25.

**Hint:** To find the change in expenditure, subtract the initial expenditure from the new expenditure.

### Conclusion
Thus, the housewife's expenditure on coffee has decreased.

**Final Answer:** The expenditure on coffee has decreased.

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