The price of sugar rises by 25%. By what percentage must a family reduce its consumption so that the total expenditure on sugar stays the same?

Question

A bought a phone from a store and paid \(\frac{1}{6}\) of the price using UPI, \(\frac{1}{3}\) of the price in cash, and the remaining balance a year later. He also paid 10% interest on the remaining balance after one year. What was the original price of the phone?

Answer 1

Step 1: If price becomes \(1.25\) times, consumption must become \(\dfrac{1}{1.25}=0.8\) times to keep spend fixed.
Step 2: Reduction \(= 1 - 0.8 = 0.20 = 20\%\).

Quick Tip: A \(r\) rise needs a \(\dfrac{r}{100+r}\times100\%\) cut: here \(\dfrac{25}{125}\times100=20\%\).

The price of sugar rises by 25%. By what percentage must a family reduce its consumption so that the total expenditure on sugar stays the same?

The Correct Option is A

Solution and Explanation

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