The price of one kilogram sugar is Rs. 200. The price has increased by 25%. What percentage of sugar intake be decreased so that, there would be no increase in the expenditure?
The price of one kilogram sugar is Rs. 200. The price has increased by 25%. What percentage of sugar intake be decreased so that, there would be no increase in the expenditure?
Explanation
Let's break it down:
Original price per kg = Rs. 200
Increased price per kg = 200 + (25% of 200) = 200 + 50 = Rs. 250
To keep expenditure the same, let's assume original consumption is 1 kg, and new consumption is x kg.
Original expenditure = 200 * 1 = Rs. 200
New expenditure = 250 * x = Rs. 200
x = 200 / 250 = 0.8 kg
Percentage decrease in consumption = ((1 - 0.8) / 1) * 100% = 20%