Question 65

The price of sugar is increased by 20%. A person wants to increase his expenditure by 8% only. By what percent should he decrease his consumption?

Solution

$$\frac{\left(100\times\ 100\right)}{120}=83.33\ kg$$Let the man have Rs 100 and price of 100 kg sugar is Rs 100

Now price is increased,

New price of sugar = Rs 120 for 100 kg

And man his increase his expenditure by 8% = Rs 108

So, man will buy in Rs 108 = $$\frac{\left(100\times\ 108\right)}{120}=90\ kg$$

So he have to decrease his consumption by 100 - 90 = 10%.

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