Percentage

Quantitative Aptitude (CDS)

Title

45:30

8 of 24 completed

5 of 15 completed

38 of 100 completed

8 of 20 completed

Indian Economy - Understanding the basics of Indian economic system

If the price of wheat rises by 25%, then by how much percent must a man reduce his consumption in order to keep his budget the same as before?

15%

20%

25%

30%

Old price x and new price 1.25x

x * y = k (where y is the total consumption and ‘k’ is the budget)

1.25x * y’ = k (y’ is the new consumption)

Equating both the equations:

y’ = 100/125 y

y’ = 4/5 y i.e. the new consumption of 4/5 of the original consumption. If original consumption was 100, new consumption = 4/5 of 100 i.e. 80.

So, the consumption must be reduced by 20%.