New Enroll in RBI Grade B New Batch - Starts on May 21

    Question

    The price of sugar has increased by 32%. By what percentage

    should the consumption of sugar be reduced to ensure that the total expenditure on sugar remains unchanged? Round off your answer to the nearest whole number.
    A 22% Correct Answer Incorrect Answer
    B 25% Correct Answer Incorrect Answer
    C 26% Correct Answer Incorrect Answer
    D 24% Correct Answer Incorrect Answer

    Solution

    Let the initial price and initial consumption of sugar be Rs. '100m' per kg and 'n' kg respectively.
    Initial expenditure = 100m X n = Rs. '100mn'
    New price = 1.32 X 100m = Rs. '132m'
    New consumption = (100mn/132m) = (100n/132) kg
    Decrease in consumption = n - (100n/132) = (32n/132) kg
    Required percent = [(32n/132) ÷ n] X 100 = (3200/132) ~ 24%

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