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Question

The price of sugar goes up by 20%. By how much per cent must a housewife reduce her consumption of sugar so that the expenditure on sugar remains the same.

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Solution

Sol:
Let the original price of the tea be Rs 100.
The price of the tea is increased by 20%.
Increased price of the tea = 100 + (20% of 100) = 100 + 20 = Rs 120.
Increase in price = 120 - 100 = Rs 20
We can consume tea of 100 rupee so we have to reduce the tea consumption of 20 rupee
Tea of cost Rs 20 is to decreased out of the increased cost of Rs 120.
Percentage decrease = (20/120) x 100 = 100/6 = 16 2/3 %.
Hence, the consumption of 16 2/3% of tea is to be decreased so that the expenditure on tea remains the same.

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