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

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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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