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The price of tea being increased by 20% , a man reduces his consumption by 20% . by how much percent will his

expenses for tea be decreased ?


Options:
A .  2 %
B .  4 %
C .  6 %
D .  8 %
Answer: Option B

Let original consumption = 100 units and original price =  Rs. 100 per unit

Original expenditure  = Rs. 100 x 100 =  Rs. 10000

New expenditure =  Rs. 120 x 80 =  Rs. 9600

`:.`   Decrease in expenditure =  `(400/10000 xx 100)`% =  4 %



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