GST on bread increases its cost by 18%, to keep their budget in control a family reduces its bread consumption by 15%...

Question

Goods and Service tax on bread increases its cost by 15%. To keep their budget in control a family reduces its bread consumption by 15%.

What is the percent increase or decrease in the expenditure of the money?

Answer 1

Let the cost of the bread be 100 initially and let the families be purchasing 100 of it at the begining.
Total Cost = 100 × 100 = 10000
After changes the cost of a bread = 115 and consumption = 85
Total cost = 115 × 85 = 9775
Therefore the percentage change in total cost = (225/10000)×100
= 2.25% reduction in total cost.