Question

If rate of sugar increases by 25%, then family has to reduce its consumption by what % to keep the expenditure same?
1. 30%
2. 25%
3. 20%
4. 15%

Answer 1

Correct Answer - Option 3 : 20%

Given:

Rate of sugar increases by 25%

Formula used:

Total expenditure = Rate × Consumption

Calculation:

Let the initial price of sugar be Rs. 100/kg and initial consumption be 100 kg

Total expenditure = Rs. 100 × 100

⇒ Rs. 10,000

Now, New rate of sugar = Rs. 100 × (125/100)

⇒ Rs. 125

New consumption = 10000/125 kg

⇒ 80 kg

Decrease in consumption = [(100 – 80)/100] × 100%

⇒ 20%

∴ The decrease in consumption is 20%