Question

The price of sugar is increased by 20%.By what percent must the consumption of sugar be decrease so that the expenditure on sugar may remain the same?

Answer 1

Answer:

Answer

Let the original price of the sugar be Rs100

And the consumption be 1kg

Then total expenditure will be Rs100×1=Rs100

Now, when price is increased by 20 %, then new price is Rs120

Then new expense will be Rs120×1=Rs120

For expense to be same to Rs100,

% decrease in sugar consumption =

120

120−100

×100=

3

50

=16.66=approx. 17 %