Price of sugar is increased by 25%. what percentage of consumption to be decreased so that there would be no increase in the expenditure ?
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Hence, E= (125/100)p x (100/125)c in order for the expenditure to be the same.
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Answer:
Let the original cost be 100
Increase in it=25%
Cost after increase=(100+25)=125
To not increase consumption reduction should be = 125-100=25
reduction on 125=25
Reduction %=(25/125×100)=20% is answer
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