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The price of rice is increased by 20 percent and a person decrease his consumption by 15 percent, so his expenditure on rice is-
increase by 2 percent
increase by 4 percent
decrease by 2 percent
decrease by 4 percent
Let initial price of rice – 100 and new price of rice – 120 suppose initial consumption is 100kg and new consumption is 85kg Initial expenditure = 10000 New expenditure = 10200 (200/10000)*100 = 2 percent increase
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