Rice is now being sold at Taka 20 a kg. During last month its rate was Taka 16 per kg. By how much percent should a family reduce its consumption so as to keep the expenditure fixed?

Rice is now being sold at Taka 20 a kg. During last month its rate was Taka 16 per kg. By how much percent should a family reduce its consumption so as to keep the expenditure fixed?

A 20%

B 15%

C 40%

D 25%

Solution

Correct Answer: Option A

Expenditure must be fixed in percentage

= (16/20) X 100= 80

.:. (100-80) = 20% is reduced