Discussion

Explanation:

Let the price of milk be = P and consumption = C.

New price of Milk = 1.5P and new consumption = C'.

New expenditure = initial expenditure

P × C = P' × C'

⇒ P × C = 1.5P × C'

⇒ C' = C/1.5 = 2C/3

Hence, new consumption is 2/3rd, i.e. reduces by 1/3rd = 33.33% reduction.

Alternately,
Price becomes (1 + 50/100) = 3/2 times

For expenditure to remain constant, consumption should become 2/3 times.

∴ % change in consumption = (2/3 - 1) × 100% = 33.33%

Hence, option (e).

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