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If the price of sugar is raised by 25%, find by how much percent a householder must reduce his consumption of sugar so as not to increase his expenditure?
- a)10
- b)20
- c)18
- d)25
Correct answer is option 'B'. Can you explain this answer?
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Verified Answer
If the price of sugar is raised by 25%, find by how much percent a hou...
Let the initial consumption of sugar be Y units and the initial price of sugar per kg be Rs. X. Thus,
The initial expenditure of household = X × Y
Given: the price of sugar increased by 25%. Thus,
⇒New price of sugar per kg = 
= 1.25X
Let the new consumption to keep the expenditure same be Y’ units. Hence,
New expenditure = 1.25X × Y’
Since the expenditures are same,
∴ XY = 1.25XY’
⇒ Y = 1.25Y’
Also, Reduction in consumption = Y – Y’
= 1.25Y’ – Y’
= 0.25Y’
⇒ Reduction percentage = 
= 20%
= 20%
Most Upvoted Answer
If the price of sugar is raised by 25%, find by how much percent a hou...
Understanding the problem:
When the price of sugar is raised by 25%, the householder needs to reduce their consumption of sugar by a certain percentage to keep their expenditure constant.
Solution:
Let's assume the initial price of sugar was $100. After a 25% increase, the new price would be $125.
Calculating the reduction percentage:
Let x be the percentage of reduction in consumption.
Initial expenditure = Initial price * Initial consumption = $100 * Initial consumption
New expenditure = New price * Reduced consumption = $125 * (1 - x/100) * Initial consumption
For the expenditure to remain constant:
Initial expenditure = New expenditure
$100 * Initial consumption = $125 * (1 - x/100) * Initial consumption
100 = 125 * (1 - x/100)
100 = 125 - 1.25x
1.25x = 25
x = 20
Therefore, the householder must reduce their consumption of sugar by 20% to keep their expenditure constant.
Final answer:
Therefore, the correct answer is option B) 20%.
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If the price of sugar is raised by 25%, find by how much percent a householder must reduce his consumption of sugar so as not to increase his expenditure?a)10b)20c)18d)25Correct answer is option 'B'. Can you explain this answer?
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