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Price of sugar rises by 20%. By how much percent should the consumption of sugar be reduced, so that the expenditure does not change?
1. 16.66%
2. 20%
3. 15%
4. 10%

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Correct Answer - Option 1 : 16.66%

We know that:

For an increase of a% in the quantity, the new quantity is obtained as:

New quantity = [(100 + a)/100] × initial quantity

Hence, the given data can be tabulated as follows:

  Rate (in Rs./kg) Weight (in kg)
Initially x (assume) y (assume)
Finally [(100 + 20)/100] × x = 1.2x z (assume)

 

As the overall expenditure remains constant, we get

x × y = 1.2x × z

⇒ y = 1.2z

⇒ z = (1/1.2)y = (5/6)y

So, the percentage decrease in the consumption of sugar = {[(y – (5/6)y)]/y} × 100 = 16.66%

∴ The percentage decrease in the consumption of sugar is 16.66%

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