Question 140

If the price of sugar is raised by 25%, find by how much percent a householder must reduce his consumption of sugar so as not to increase his expenditure?

Solution

let the initial cost sugar be Rs y and initial amount bought be z kg

hence total expenditure = Rs yz

now price of sugar is increased by 25% hence new price = Rs 1.25 y

let the new consumption be m kg

so 1.25y x m = yz

m = 0.8z

hence consumption should be reduce by 20% to neutralize the effect of price rise

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