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Due to increase of in the price of milk, a family reduces its consumption of milk by . What was the effect on expenditure of that family on account of milk?

A

decrease

B

decrease

C

decrease

D

decrease

Answer

Let us assume that,
Milk consumed by family initially
Price of milk initially
Total expenditure on milk

There's a increase in price of milk
New price of milk
Also, a reduction in consumption of milk by family
Milk consumed by family

Total expenditure on milk
                                               

Decrease in expenditure

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