1.

If the price of sugar is raised by 25%, find by how much per cent a householder must reduce his consumption of sugar so as not to increase his expenditure?1). 102). 203). 184). 25

Answer»

Let the initial consumption of sugar be Y units and the initial price of sugar PER KG be Rs. X. Thus,

The initial expenditure of household = X × Y

Given: the price of sugar increased by 25%. Thus,

⇒New price of sugar per kg $( = X + \frac{{25}}{{100}}X)$

= 1.25X

Let the new consumption to keep the expenditure same be Y’ units. Hence,

New expenditure = 1.25X × Y’

Since the EXPENDITURES are same,

∴ XY = 1.25XY’

 ⇒ Y = 1.25Y’

Also, Reduction in consumption = Y – Y’

= 1.25Y’ – Y’

= 0.25Y’

⇒ Reduction percentage $(= \frac{{Y - Y'}}{{Y}} \times 100)$

$( = \frac{{1.25Y' - Y'}}{{1.25Y'}} \times 100)$

= 20%



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