If the sugar price is increased by 25% by how much percent consumption should be reduced that expense remains same.
Answer & explanation
Correct answer: option 2
Note: Price × Consumption = Expenditure.
When expenditure remains same then Price ∝ \(\frac{1}{consumption}\)
Now, according to question
25% = \(\frac{1}{4}\)
If Price ratio becomes ⇒ 4 : 5, then
Consumption should be ⇒ 5 : 4
Consumption decreased by = 1R
Decreased percentage = \(\frac{1}{5}\) × 100% = 20%