If prices of sugar decrease by 6.25%, by what percent can a household

Question

If prices of sugar decrease by 6.25%, by what percent can a household increase its consumption of sugar in the same expenditure?

A. 5
B. 6.25
C. 6.66
D. 10
E. 12.5

Abhishek009 · Answer

If the price of a commodity is decreased by p% then the increase in consumption of the commodity so as not to increase its expenditure is given by -  \frac{p}{(100-p)}*100

Applying the same we have  \frac{6.25}{106.25}*100 = 6.66 , Answer must be (C)

ScottTargetTestPrep · Answer

We can let Q = quantity and P = price, and create the equation:

0.9375P x (1 + n/100)Q = PQ

Dividing both sides by PQ, we have:

0.9375 x (100 + n)/100 = 1

0.9375 = 100/(100 + n)

93.75 + 0.9375n = 100

0.9375n = 6.25

n = 6.25/0.9375

n = 6.66

Answer: C

LeoN88 · Answer

Let c be old consumption and d be new consumption:-

By chain rule
100 * c = (93.75) * d

so, d= c * (100/93.75)

Now we have to find:- (d-c)/c * 100, substitute the value of d to get answer  6.66
Option C

rishab0507 · Answer

Shouldn't it be 93.75 i/o 106.5 : As dividing 106.25 gives 5.88 as value.

samarpan.g28 · Answer

The relation between price and consumption here is that price = k/consumption, where k is constant. Assume simple values like 100 and 1000 for price and consumption to find k. Next, use k's value to find new consumption. Finally the percentage change of consumption.

UVA2024 · Answer

Easiest way to think about this is estimation, at least when the answers are this dispersed.

We know that if a number decreases by x percent, it will always take more than x percent to return to that same number. The smaller the x percent decrease, the smaller the delta between the percent decrease and increase to return to the same number. Given 6.25% is relatively small, we know that the increase will only be slightly greater. The only answer that fits this criteria is 6.66%.

With less dispersion of answers, math is necessary, but as of the current answers, this is easily solved using solely intuition.

If prices of sugar decrease by 6.25%, by what percent can a household

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If prices of sugar decrease by 6.25%, by what percent can a household

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