Multiple choice

If the price of the sugar increases by 20%, then what should be percentage reduction in consumption so that the expenditure increases only by 8%?

  1. 10%

  2. 15%

  3. 20%

  4. 8%
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A Correct answer
Explanation

Let original price be 100, consumption be 100, expenditure be 10000. New price is 120. New expenditure is 10800. New consumption = 10800 / 120 = 90. Reduction = 100 - 90 = 10%.

AI explanation

Using the expenditure formula where price multiplied by consumption equals expenditure, the new price is 120 and the target expenditure is 108. This makes the new consumption 108 divided by 120, which equals 0.9, or 90% of the original consumption. The required reduction in consumption is 10%, making the final result 10%.

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