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.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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