Answer: Option A
Answer: (a)
The raised price = $120/100$ of the former price
The householder must now consume $100/120$ of the original amount
The reduction in consumption = $(1 – 100/120)$ of the original consumption = $1/6$ of the original consumption
i.e. 1 : 6
Using Rule 8,
If the income of a man is A% more than another man, then income of another man is less in comparison to the 1st man by
$(A/(100 + A)× 100)%$