Numerical answer
The price of sugar increases by 25%. By what percentage should a family reduce its sugar consumption so that its expenditure on sugar increases by only 10%?
Show answer and solution
Answer: 12
Expenditure = Price × Consumption. New expenditure/Old expenditure = 1.10 = (New Price/Old Price) × (New Consumption/Old Consumption) = 1.25 × (New Consumption/Old Consumption). So New Consumption/Old Consumption = 1.10/1.25 = 0.88, i.e., consumption must fall by 12%.
Saved on this device. Sign in or create a free account to keep it on every device.