The price of sugar increased by 22.5%. Anita wants to keep her expenditure on sugar same as before. By what percentage must she reduce her consumption of sugar (correct to two place of decimals)?
Show answer & explanation
Correct answer: B
Explanation
The correct answer is option 2 i.e. 18.37% .
Let original price = 100
New price = 100 + 22.5 = 122.5
Let original consumption = 100
Original expenditure = 100 × 100 = 10000
Let new consumption = x
New expenditure = 122.5 × x
To keep expenditure same ⇒ 122.5x = 10000
x = 10000 ÷ 122.5
x = 81.63
Reduction in consumption = 100 − 81.63
Reduction = 18.37%