Question

If the price of Sugar increases by 20%, and Salman intends to spend only an additional 5% on Sugar, then find out the percentage decrease in his sugar consumption.

• A. 5.25
• B. 12.5
• C. 11.75
• D. 10.25

Answer 1

The Correct Option is B

Let's determine the percentage decrease in Salman's sugar consumption step by step.
1. Price Increase: The price of sugar increases by 20%. This means the new price is 120% of the old price, or \(1.2 \times \text{old price}\).
2. Budget Increase: Salman increases his spending on sugar by 5%. This means the new budget is 105% of the old budget, or \(1.05 \times \text{old budget}\).
3. Consumption Calculation: The quantity of sugar he can buy at the new price with the new budget is:
\[ \frac{\text{New budget}}{\text{New price}} = \frac{1.05 \times \text{old budget}}{1.2 \times \text{old price}} = \frac{1.05}{1.2} \times\frac{\text{old budget}}{\text{old price}}  \]
4. Simplifying:
  \[\frac{1.05}{1.2} = 0.875\]
  This means Salman can buy 87.5% of the sugar he used to buy.
5. Percentage Decrease:
  The decrease in consumption is \(100\% - 87.5\% = 12.5\%\).
Therefore, the percentage decrease in his sugar consumption is:
Answer: B (12.5)