Price of an article has been increased by 30%. But I have decided to i

Price of an article has been increased by 30%. But I have decided to increase my expenditure only by 17%.Then what is the percentage change in the consumption of the article?1. 22.22%2. 11.11%3. 33.33%4. 10%

Answer» Correct Answer - Option 4 : 10%

Given:

Price of an article has increased by 30%

Increase in expenditure = 17%

Formula used:

Ratio Method

As, Expenditure = (Price × Consumption)

⇒ Consumption = (Expenditure/Price)

Calculation:

Let us assume the initial price of the article be = 100x

After increasing, the final price = 130x

Also, the Expenditure of the article increased by 17%

Let us assume the initial Expenditure be = 100y

After increment, The final Expenditure be = 117y

Initial : Final

Expenditure 100y : 117y

Price 100x : 130x

After Cross Multiplication we get,

Ratio of consumption,

⇒ 100y × 130x : 117y × 100x

⇒ 10 : 9

Percentage change in Consumption = (10 – 9)/10 = (1/10) × 100 = 10% Decrease

∴ The percentage change in the consumption of the article is 10%