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?

Correct answer marked below

(700/107)

Correct

(107/100)

(100/107)

(7/100)

(100/700)

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Explanation

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Official Explanation

Official

Assume old price = $100 and old consumption =

1

kg.

New price = $107.

We want total spending to remain at $100.

So, (New consumption)

\times 107 = 100

→ New consumption =

\frac{100}{107}

kg.

Percent decrease =

\frac{\text{Change}}{\text{Original}} \times 100 = \frac{1 - \frac{100}{107}}{1} \times 100 = \frac{700}{107}\%

.…

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What this question tests

Your ability to apply GMAT math concepts to solve a multi-step problem quickly and accurately. At the 705-805 level, accuracy and speed both matter.

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