Question

when the price of sugar is increased by 20% a housewife reduces consumption of sugar by 20 percent. what will be the effect on her expenditure on sugar

Answer 1

Let initial price of sugar be X
Let initial quantity used by Y

thus      new price = 20% of X + X
                             = 0.20 X + X                
                               = 1.20 X

new amount      = 0.20 Y + Y
                          = 1.20 Y
Thus we can clearly say that

There no change in the daily routine use of housewife