# 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% = $$\frac{1}{3}$$

## Join The Discussion

## Comments ( 2 )

Related Questions on Percentage

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

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

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

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

Why we have divided by 150 while finding percent

How it is 1/3

Actually its 100/3