Question

The price of sugar was increased by 32%. A family reduces its consumption so that expenditure on sugar is up by 10% only. If total consumption before the price rise was 10 kg/month, what is the current consumption (kg/month)?

• A. 9.5
• B. 9
• C. 8.33
• D. 8
• E. 7.5

Hint:

Formula: $\text{New Consumption} = \text{Old Consumption} \times \frac{100 + \% \text{increase in Exp}}{100 + \% \text{increase in Price}}$.

Answer 1

The Correct Option is C

Step 1: Analyse options.
- Let initial price be ₹100/kg. Initial expenditure = $10 \times 100 = ₹1000$. - New price = ₹132/kg. - New expenditure = $1000 + 10\% = ₹1100$. - New consumption = $\frac{1100}{132} = 8.33$ kg.
Step 2: Conclusion.
The current consumption is 8.33 kg. Final Answer: (c) 8.33