Multiple Choice Questions on After the GST market price of loose sugar decrease by 25 because of which Kavya now is able to buy 1........... for Mathematics - All Exams Preparation

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Indian Economy - Understanding the basics of Indian economic system

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    After the GST, market price of loose sugar decrease by 25% because of which Kavya now is able to buy 1 kg more sugar for Rs. 30. Find the reduced rate of sugar per kilogram.

    17 1/2

    Incorrect Answer

    7 1/2

    Correct Answer

    10

    Incorrect Answer

    7 3/10

    Incorrect Answer
    Explanation:

    We know that,
    Expenditure = Price × Consumption
    Keeping the expenses constant between price and consumption if one goes up,
    the other goes down and vice-versa.
    Ex. If price goes up by 25% (1/4), then the consumption should go down by,
    = 1 /4+1 = 1/5 = 20% to keep the expenses same.
    Here, reduction in price = 25% =  1/4 ,
    = 1 /4-1 = 1/3 = 1 kg.
    ∴    Increase in consumption will be
    Which means kavya initially used to buy 3 kg sugar for 30/-
    ∴   Initial price of sugar = 30/3 = 10
    ∴   Reduced price = (100 – 25)% of 10/-
    = 75 × 10 = 7.5 or 7 1/2


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