Price of tea has increased by 20% butI have decided to increase my expenditure towards tea by 15% only. By What percentage should I reduce my consumption (correct to one place of decimal) in order to be able to maintain the same level of expenses towards tea?
Let the price of 100 kg tea be Rs 100 and I have also Rs 100 for expenditure on tea
After increment of 20% price of tea = Rs 120
Now I have also increased my expenditure towards tea by 15% = Rs 115
Now reduction in consumption for maintaining the same level of expenditure towards tea = $$\frac{5\times100}{120}=4.20 Â approx$$
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