The sugar price got raised by 25%. To maintain the same level of expenses on sugar, a person reduced the consumption of sugar by 4% and also increased his expenditure on sugar by x%. The value of x is:
Show answer & explanation
Correct answer: D
Explanation
Correct Answer is option 4 i.e. 20
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Concept |
Understanding |
Application |
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Expenditure = Consumption × Price If price is increased by ‘a’% and consumption is decreased by b%: Then increase in the expenditure = [a – b – ab/100] |
Given that Price is increased by 25% and consumption is decreased by 4%. |
According to the question, 25% - 4% - (25 × 4/100)% = x% ⇒ x% = 20% ⇒ x = 20 |