The price of sugar is increased by 20%. As a result, a family decreases its consumption by 25%. The expenditure of the family on sugar will be decreased by

10 %

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5 %

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14 %

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15 %

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Solution

The correct option is A 10 %
Change in expenditure $= i n c r e a s e p e r c e n t v a l u e - d e c r e a s e p e r c e n t v a l u e - \frac{i n c r e a s e p e r c e n t v a l u e \times d e c r e a s e p e r c e n t v a l u e}{100}$
$\Rightarrow 20 - 25 - \frac{20 \times 25}{100} = 20 - 30 = - 10$
Hence expenditure will decrease by 10%

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The price of sugar is increased by 20%. As a result, a family decreases its consumption by 25%. The expenditure of the family on sugar will be decreased by

The correct option is A 10 %Change in expenditure =increasepercentvalue−decreasepercentvalue−increasepercentvalue×decreasepercentvalue100⇒20−25−20×25100=20−30=−10Hence expenditure will decrease by 10%