Question

If the cost of sugar increases by 25% how much percent consumption of sugar should br decreased in order to keep expenditure fixed?

Answer 1

Let the price of sugar for 100kg be Rupees 100.
After increase in price :-
100kg is available for ₹125.

If we pay ₹125 then we get sugar of 100kg.
If we pay ₹1 then we get sugar of
$\frac{100}{125}$
If we pay ₹100 then we get sugar of
$\frac{100}{125} \times 100$
$= 80$
We get 80 kg of sugar now from ₹100.

ANSWER :- The consumption must be reduced by 20%.