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Q.

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?

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a

1623%

b

6123%

c

1613%

d

6113% 

answer is A.

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Detailed Solution

Let the price of the sugar be Rs. 100
As it is given, the price is increased by 20%.
Therefore, new price =100+20% of 100
   =100+20100×100
   =100+20
   Rs. 120
Now, difference between the price =Rs. 120-Rs. 100
             =Rs. 20
Therefore, the expenditure on sugar to remains the same will be decreased by =differencenew price×100%
=20120×100%
=503%
=1623%
  
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