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If the price of sugar is increased by 7%, then by how much percent should a housewife reduce her consumption of sugar, to have no extra expenditure?

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100 over 107%

107 over 100%

7 over 107%

answer is A.

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Detailed Solution

% reduction in consumption

$\begin{array}{l} = \frac{% change in price}{100 + % change in price} \times 100 \\ = \frac{7}{100 + 7} % = - \frac{7}{107} % \end{array}$

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