When the price of sugar gets raised by 50 a person increases his expenditure on sugar only by 25 By ...........

Quantitative Aptitude (MTS) Percentage

When the price of sugar gets raised by 50%, a person increases his expenditure on sugar only by 25%. By what percentage

(correct up to two decimal places) should he reduce his consumption of sugar?

This questions was previously asked in

SSC MTS 2nd Nov 2021 Shift-2

12.75

15.75

16.67

11.54

- Initially, let's assume the person spends $100 on sugar.

- With a 50% price increase, the price becomes 1.5 times the original.

- Hence, to maintain the same consumption, expenditure should increase to $150.

- But the person increases expenditure by only 25%, i.e., to $125.

- Therefore, the quantity of sugar he buys should be reduced.

- Reduced expenditure as a ratio: $ \frac{125}{150} = \frac{5}{6} $.

- Hence, consumption reduces by $ \left(1 - \frac{5}{6}\right) \times 100 = 16.67\%$.

Green tick the correct option: Option 3: 16.67%

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