# Percentage Problem 12

### From Homeworkwiki

**The price of a certain commodity is reduced by 20 %. By what percent should its consumption be increased**

**in order to have the same expenditure ?**

**Solution:**

Let the original price be $ 100

=> Reduced price = $ 100 - 20 % of $ 100 = $ 100 - $ 20 = $ 80

In order to keep the expenditure same:

On $ 80, the consumption costing $ 100 - $ 80 = $ 20 should be increased.

=> Percentage increase in consumption should be 20 / 80 X 100 % = **25 %.**