The price of sugar is increased by 40%. By what percentage must one cut down on the consumption of sugar so that no extra amount has to be incurred on sugar?
Show answer & explanation
Correct answer: B
Explanation
The correct answer is option 2 i.e. 28.5%.
Concept used:
If the expenditure remains same,
Price is inversely proportional to consumption
Calculations:
We know that, price of sugar is increased by 40%
Let the price before increase be 5x
Price after 40% increase = 7x
Consumption before price increase = 7x
Consumption after price increase = 5x
Required percentage decrease = (2x/7x) × 100 = 28.5%