The price of sugar is decreased by 20%. If the expenditure on sugar is to be kept same then the ratio between increase in consumption to actual consumption will be:
Answer & explanation
Correct answer: option 3
Price × Consumption = Expenditure
*(If expenditure remains same the price is inversely proportional to consumption)
Therefore,
20% = \(\frac{1}{5}\)
Price ratio: 5 : 4
Consumption: 4 : 5
Hence,
Increase : Actual
Consumption: 1 : 4