The price of sugar is increased by 40%. By what percentage must one cut down on the consumption of sugar so that no extra amount has to be incurred on sugar?
Answer & explanation
Correct answer: option 2
Price x Consumption = Amount spend on sugar
If the amount has to kept same,
Consumption of sugar is to be decreased in reverse ratio,
we know 40% = 2/5,
⇒ increase of 40% = 7/5
Original : New
Price 5 : 7
Consumption 7 : 5
Therefore, there is decrease of $\frac{2}{7}$ x 100 = 28.5%