Question

The price of sugar is increased by 20%. As a result, a family has decreased its consumption by 20%. The expenditure of the family on sugar is decreased by​

Answer 1

Answer:[E = P * C]

If price is increased by 20%, then P becomes 1.2P.

Expenditure is increased by 10%, then E becomes 1.1E

So, the new consumption C1 can be established as:

(1.2P)*(C1) = 1.1E

=> C1 = (1.1/1.2)*(E/P)

=> C1 = (11/12)*10 (As initial consumption C is 10 kg)

=> C1 = 9.17 kg

Thus, the new consumption is 9.17kg.(Answer)