DarkKnight06 wrote:
The price of sugar is increased by 7%. By how much percent should a home maker reduce her consumption of sugar to have no extra expenditure?
A. (700/107) %
B. (107/100) %
C. (100/107)%
D. (7/100)%
E. (100/700)%
A. (700/107) %
B. (107/100) %
C. (100/107)%
D. (7/100)%
E. (100/700)%
Old price = $100 (assume);
Old consumption = 1 kg (assume).
New price = $107.
We want the spendings to remain at $100.
(New consumption)*107 = 100 --> (New consumption) = 100/107 kg.
Percent decrease = Change/Original *100 = (1 - 100/107)/1*100 = 700/107%.
Answer: A.
Else you can notice that the decrease in consumption must be very close to 7% (a bit less) and taking this into account only A makes sense.