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When the price of sugar gets raised by 50%, a person increases his expenditure on sugar only by 25%. By what percentage (correct up to two decimal places) should he reduce his consumption of sugar?
Let the price of the sugar be 100.
According to question,
Raised price = $$100+\frac{50}{100}\times\ 100=150$$
i.e; $$100+\frac{25}{100}\times\ 100=125$$
Now the Increased price of sugar to the price of sugar due to increased expenditure : 150 : 125
As we know,
Consumption is inversely propotional to the price
Ratio of consumption = 125 : 150
Required decrease percentage = $$\frac{25}{150}\times\ 100=16\ \frac{\ 2}{3}\%$$
i.e 16.67 %
Hence, Option C is correct.
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