If cost of sugar increases by 25%. How much percent consumption of sugar should be decreased in order to keep expenditure fixed?
Answer: 20%
Explanation
Use the formula:
% decrease = (increase ÷ (100 + increase)) × 100
= (25 ÷ 125) × 100 = 20%
So, to keep the total expenditure the same, consumption must decrease by 20%.
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