Question 67

If the price of sugar is increased by 10%, then by how much percent consumption should be reduced so that the expenditure remains the same?

Solution

Let initial price of sugar = Rs. 10 and expenditure = Rs. 10

=> Consumption = $$C=10\times10=100$$

Now, New price of sugar = $$10+(\frac{10}{100}\times10)$$

= $$10+1=Rs.$$ $$11$$

New Expenditure = Rs. 10

=> New consumption = $$C'=11\times10=110$$

$$\therefore$$ Required % = $$\frac{C'-C}{C'}\times100$$

= $$\frac{110-100}{110}\times100$$

= $$\frac{100}{11}=9.09\%$$

=> Ans - (A)

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