The price of sugar rises by 20%. By what percent must a family reduce its consumption so that its expenditure on sugar stays the same?
A. 20%
B. 12.5%
C. \(16\frac{2}{3}\)%
D. 18%
A. 20%
B. 12.5%
C. \(16\frac{2}{3}\)%
D. 18%
Best answer
Answer: C. \(16\frac{2}{3}\)%
Answer: (C) \(16\frac{2}{3}\)%
Shortcut: reduction = \(\frac{r}{100+r} \times 100 = \frac{20}{120} \times 100 = 16\tfrac{2}{3}\%\).
Plain: price 100 → 120. To keep spending at 100, consumption must be 100/120 of before, i.e. a cut of 1/6 = 16⅔%.
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