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If the price of the commodity is increased by 50% by what fraction must its consumption be reduced so as to keep the same expenditure on its consumption?

A. $$\frac{1}{4}$$

B. $$\frac{1}{3}$$

C. $$\frac{1}{2}$$

D. $$\frac{2}{3}$$

Answer: Option B

Solution(By Examveda Team)

Let the initial price of the commodity be 100.

After 50% increase in price, It will become,
100 ------50% increase----> 150.
Now, we have to reduce the consumption to keep expenditure 100.

Increase in price= 150 - 100 = 50
We have to reduce the consumption,
$$\eqalign{ & = \frac{{50}}{{150}} \times 100 \cr & = \frac{1}{3}{\text{ or 33}}{\text{.33}}\% \cr} $$

Other Method:
Here, we use, Final product constant graphic.
100 ==50% up== 150===33.33% down===>100
Consumption Reduce = 33.33% = $$\frac{1}{3}$$

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Comments ( 2 )

  1. Aayush Birat
    Aayush Birat :
    4 months ago

    Why we have divided by 150 while finding percent

  2. FACTOM WORLD
    FACTOM WORLD :
    6 months ago

    How it is 1/3
    Actually its 100/3

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