The price of sugar is increased by 24%. A person wants to increase his expenditure by 18% only. By approximately what percent should he decrease his consumption?
Show answer & explanation
Correct answer: C
Explanation
The correct answer is option 3 i.e. 4.8%
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Concept |
Understanding |
Application |
Fair calculation |
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Expenditure = Price × Consumption |
Suppose initial price of sugar = 100 Consumption = 100 Hence, Initial expenditure = 100 × 100 = 10000
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Increased price of sugar = 100 × 1.24 = 124 Person wants his expenditure increase by 18% only, So, his expenditure should be = 10000 × 1.18 = 11800 Hence, New consumption = 11800/124 = 95.16 Required percentage = [(100 – 95.16)/100] × 100 = 4.8% (Approx.) |
11800/124 = 95.16 [(100 – 95.16)/100] × 100 = 4.83 |