A family spends ₹240 per month to buy sugar. A rise of 25% in the price of sugar compels the family to reduce the monthly consumption of sugar by 1.5 kg as it decides to spend the same amount of money on purchase of the commodity. What is the increased price per kg of sugar?
Show answer & explanation
Correct answer: C
Explanation
The correct answer is option 3 i.e. Rs 40
Let the initial cost price of sugar per kg = 4x
Amount of sugar they used to buy = 240/4x = 60/x
After an increase of 25% in cost price, the new cost price of sugar = 5x
Amount of sugar the family would get = 240/5x = 48/x
According to the given condition, the family can use 1.5kg less sugar. Thus,
60/x = 48/x + 1.5
⇒ 12/x = 1.5 ⇒ x = 12 / 1.5
⇒ x = 8
The increased price = 5x = 40