engineering intelligence MCQ #36

If the price of a commodity increases by 25%, by how much percent should the consumption be reduced to keep the expenditure the same?

engineering intelligence MCQ #36

  1. Question 1

    Q1. If the price of a commodity increases by 25%, by how much percent should the consumption be reduced to keep the expenditure the same?

    • A) 20%
    • B) 25%
    • C) 15%
    • D) 30%

    Answer: 20%

    Explanation: Let's denote original price and consumption as P and C. Original expenditure = PC. New price = 1.25P. To keep expenditure the same, 1.25P * new C = PC. So, new C = C / 1.25 = 0.8C, meaning a 20% reduction.