The price of sugar is decreased by 10%. By what percent can a person increase the consumption so that there is no change in the expenditure?
Let the initial price of Sugar is Rs. x and initial monthly consumption of sugar is y kg. So, monthly expenditure towards use of sugar is
x $$\times\ $$ y = Rs. xy
When sugar price increased by 10% then price of sugar will become 1.1 x. To maintain expenditure constant, Rs. xy to be fixed. Hence consumption of sugar to be reduced by 1 * 100/1.1 = 9.1 % or $$\frac{100}{9}\ \%\ $$ Ans.
Create a FREE account and get:
Quick, Easy and Effective Revision
By proceeding you agree to create your account
Free CAT Formulae PDF will be sent to your email address soon !!!
