when the cost of sugar increases by 25% aaron reduces his annual consumption by 10%.. find the percentage in his annual expenditure on sugar
Answers
Let original price be Rs.100.
Then, increased price = Rs.125
Therefore, Reduction in consumption
= (125−100125×100)
= (25125×100)% = 20%
I am not sure please check that this answer is suitable for your question or not.
Concept
Total spending is a word that refers to the total sum of money spent on a good during a specific period of time. The quantity of the product purchased multiplied by the purchase price results in the calculated amount.
Expenditure: the total of the cost of one or more goods or services multiplied by the cost per item bought.
Given
cost of sugar increases = 25%
Aaron decreases his yearly intake = 10%
Find
how much he spends on sugar on an annual basis.
Solution
let aaron consume 100 kg per annum at Rs. 100 per kg.
so the total expenditure was = 100 × 100 = Rs. 10,000
Now rate is increased by 25%, so the new rate is:
100 × 125/100 = 125 Rs
Now man reduces his annual consumption by 10%
100 × 90/100 = 90
New expenditure is 125 × 90 = 11,250 Rs
Difference between Initial expenditure and final expenditure.
11250 ₋ 10000 = 1250 Rs
percentage change is:
1250 × 100/10,000
=25/2
= 12.5%
hence 12.5% is his annual expenditure on sugar.
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