If the price of rice increases by 20% and a person reduces its consumption by 20%, by what percentage will his total expenditure on rice decrease?

Correct option is A

Given:
Price increase = 20%
Consumption decrease = 20%
Formula Used:
Net percentage change = x + y +  $$\frac{xy}{100}$$​​
Solution:
Substitute the given values into the formula:
x = 20
y = -20
Calculate the net change:
= 20 - 20 +  $$\frac{20 \times -20}{100}$$​​
= 0 - $$\frac{400}{100}$$​ = -4
The negative sign indicates a decrease.
Therefore, the total expenditure decreases by 4%.
Final Answer
So the correct answer is (a)