If the price of wheat rises by 25 then by how much percent must a man reduce his consumption in orde...........

Quantitative Aptitude (CDS) Percentage

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%.

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