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The price of sugar is increased by 20%. How much we reduced the consumption so that the price would not increase?
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The price of sugar is increased by 20%. How much we reduced the consum...

- Firstly, let's calculate how much the price of sugar will increase with a 20% hike.

Calculation of Price Increase:
- Let the original price of sugar be $x.
- After a 20% increase, the new price will be $1.20x.
- Now, let's assume the original consumption of sugar is y units.

Calculation of Reduced Consumption:
- To ensure that the price does not increase, the total amount spent on sugar should remain the same.
- Initially, the total expenditure on sugar = x * y
- After the price hike, the total expenditure = 1.20x * z, where z is the reduced consumption.
- Equating the two expressions:
x * y = 1.20x * z
y = 1.20z
z = y / 1.20
z = 5y / 6
Therefore, the consumption of sugar should be reduced by 1/6th or approximately 16.67% to keep the total expenditure on sugar the same despite the price increase.
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The price of sugar is increased by 20%. How much we reduced the consumption so that the price would not increase?
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