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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.]
11.11%
12.5%
14.16%
13.04%
- 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: (New Price−Old PriceNew Price)×100%.
Given that:
- Old Price = 100 (arbitrary units)
- New Price = 115 (after 15% increase)
- The necessary decrease in quantity is given by: 15115×100%=13.04%.
- Therefore, the correct option for the percentage decrease in consumption is:
Option 4: 13.04%.
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