The price of sugar increases by 15%. By what percentage should the consumption of sugar be decreased so that the expenditure
on the purchase of sugar remains the same? [Give your answer correct to 2 decimal places.]
This questions was previously asked in
SSC MTS 12th July 2022 Shift-3
Explanation:
- The price of sugar increases by 15%, meaning that for every 100 units of currency spent, one now spends 115 units.
- The goal is to keep the total expenditure constant despite this increase in price.
- Thus, we need to reduce the quantity purchased, so that the expenditure remains the same.
- The relationship between price and quantity when the total expenditure is to remain constant is inversely proportional.
- To find the percentage decrease in consumption, we use the formula for percentage decrease: \((\frac{{\text{New Price} - \text{Old Price}}}{\text{New Price}}) \times 100\%.\)
Given that:
- Old Price = 100 (arbitrary units)
- New Price = 115 (after 15% increase)
- The necessary decrease in quantity is given by: \(\frac{15}{115} \times 100\% = 13.04\%\).
- Therefore, the correct option for the percentage decrease in consumption is:
Option 4: 13.04%.
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By: santosh