The price of sugar is increased by 17%. A person wants to increase his expenditure by 5% only. By approximately what percent should he decrease his consumption?
Expenditure = Price $$\times$$ Consumption
Initially , let e be the expenditure , p be price and c be the consumption.
e = p $$\times$$ c
Now , p is increased by 17% and expenditure can only be increased by 5 %. Let c' be the new consumption.
1.05 e =1.17 p $$\times$$ c'
c' = 89.74%
So , consumption should be decreased by 10.25%.
So , the answer would be option b)10.3%.
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