Multiple choice

The price of sugar increases by 20%, by what % should a housewife reduce the consumption of sugar so that expenditure on sugar can be same as before?

  1. 15%

  2. 16.66%

  3. 12%

  4. 9%
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

Let original price = P and consumption = C. New price = 1.2P. For expenditure to remain same: P × C = 1.2P × C' where C' is new consumption. This gives C' = C/1.2 = (5/6)C. Reduction = C - C' = C - (5/6)C = C/6 = 16.66%. Alternatively, use the formula: reduction% = (100 × increase%) / (100 + increase%).

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