Question

The price of sugar is increased by 20%. By what percent must the consumption of sugar be decreased so that the expenditure on sugar may remain the same (upto the nearest integer)?

Answer 1

Let the original price of the sugar be $Rs100$
And the consumption be $1kg$
Then total expenditure will be $Rs100\times 1=Rs100$
Now, when price is increased by $20$ %, then new price is $Rs120$
Then new expense will be $Rs120\times 1=Rs120$
For expense to be same to $Rs100$,
% decrease in sugar consumption $=\frac{120-100}{120}\times 100=\frac{50}{3}=16.66=approx.17$ %