Let the initial price = 1 and initial consumption = 1
So, initial expenditure = (1 \times 1 = 1)
After increase:
Let new consumption = (x)
New expenditure=New price×New consumption
1.44=1.6×x
x=1.61.44=0.9
So, consumption becomes 0.9 (i.e., 90% of original)
Reduction in consumption:
1−0.9=0.1=10%
Final Answer:
10%