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Due to the increase of 15% in the price of milk, a family reduces its consumption of milk, by 15%. What was The effect on the expenditure of that family on account of milk?
Class: 9

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2.50% Decrease

2.25% Decrease

3% Decrease

3.50% Decrease

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Detailed Solution

Expenditure = Price × Quantity
Given that Price increase by 15% and Consumption (quantity) decease by 15%

Expenditure decrease = 2.25%

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