If the price of sugar increases by 10%, by what percentage a housewife should reduce the consumption of sugar so that expense is not increased?
Answer & explanation
Correct answer: option 2
Let the price of sugar per kg be Rs 50 and sugar consumption be 10 kg with expenditure of 50*10=Rs 500
Increased price of sugar by 10%=50*110/100=Rs 55
Quantity of sugar consumption to keep expenditure on sugar remain same=500/55=9.091 grams
Reduction in quantity of sugar consumption = 10.000 – 9.091 = 0.909
Percentage must a family reduce its consumption, so that the family's expenditures do not increase= 0.909/10 * 100 = 9.09% or 9.10%
OR
Let us assume,
Price(P) - 10, Qty(Q) - 10, Expenditure(E) = P*Q = 100
Price increases by 10%
P = 11, Q = ?, E = 100
Q = \(\frac{100 }{ 11}\)
Qty = 9.09
Reduced qty = 10 - 9.09 = 0.91
Reduced percentage = 0.91/10 * 100 = 9.10%