The price of sugar has increased by 25%. Find the percentage reduction in…
2025
The price of sugar has increased by 25%. Find the percentage reduction in consumption so as to not increase the expenditure?
Answer: B. 20 — Key idea: keep expenditure constant when price changes. Let the original price be P and original consumption be Q. Original expenditure = P × Q. After a 25%…
- A.
10
- B.
20
- C.
30
- D.
40
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Correct answer: B
Key idea: keep expenditure constant when price changes.
Let the original price be P and original consumption be Q. Original expenditure = P × Q.
After a 25% price increase, new price = 1.25 × P. Let new consumption be Q'. To keep expenditure the same: 1.25P × Q' = P × Q.
Solve for Q': Q' = Q / 1.25 = 0.8 Q. Thus consumption must be 80% of the original.
Reduction = (Q − Q')/Q = 1 − 0.8 = 0.2 = 20%.
Answer: 20% reduction in consumption.