When the price of sugar gets raised by 30%, a person increases his expenditure on sugar only by 12%. By what percentage ( correct up to two decimal places) should he reduce his consumption of sugar so as to be able to maintain the same level of expenditure?
Explanation:
- Scenario: When the price of sugar increases by 30%, the individual only raises their sugar spending by 12%.
- Objective: Determine by what percentage the person should lower their sugar consumption to match their previous expense level.
- Price Increase: 30%
- Increased Expenditure: 12%
- Required Adjustment: Calculate the reduction percentage in sugar consumption.
\[
\text{New Price} = 1.30 \times \text{Old Price}
\]
\[
\text{New Consumption} = \text{Original Consumption} \times (1 + 0.12/1.30)
\]
\[
\text{Reduction} = 1 - \frac{1.12}{1.30}
\]
\[
\text{Percentage Reduction} = \left( 1 - \frac{1.12}{1.30} \right) \times 100 \approx 13.85\%
\]
- Option 1: Incorrect
- Option 2: 13.85% is accurate and matches the required reduction.
- Option 3: Incorrect
- Option 4: Incorrect
Option 2: 13.85% is indeed the right calculation.
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By: santosh