The price of sugar increased by 20%. By how much percent the consumption should be reduced so that expenditure does not change?
Answer & explanation
Correct answer: option 4
Price × Consumption = Expenditure
*(If expenditure remains same the price is inversely proportional to consumption)
Therefore,
20% = \(\frac{1}{5}\)
Price ratio: 5 : 6
Consumption: 6 : 5 ⇒ 1 (Reduced by)
Reduced percentage = \(\frac{1}{6}\) × 100% = 16\(\frac{2}{3}\)%