Question 89

The price of sugar is increased by 20%. If the expenditure is not allowed to increase, the ratio between the reduction in consumption and the original consumption is

Solution

Initially, let us assume that the price of sugar was Rs.100/kg.
Now, after the increase the price is Rs120/kg.
A person can buy 1kg of sugar for Rs.120.
He can buy xkg of sugar for Rs.100
Hence, x=(100/120) = 5/6
reduction in consumption = (1/6)
Ratio of reduction in consumption to original consumption = 1:6
Hence, the correct option is option C.

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The price of sugar is increased by 20%. If the expenditure is not allowed to increase, the ratio between the reduction in consumption and the original consumption is

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