Question

If the price of cooking oil increases by 25%, then by how much percentage should a family reduce its consumption of cooking oil so that their expenditure on cooking oil remains the same?

• A. 15%
• B. 20%
• C. 25%
• D. 30%

Answer 1

The correct option is B

20%

The percentage of reduction is calculated with the new price of the oil.

Let the price of cooking oil = ₹100

Increase in price = 25% of 100 = 25

$\therefore$ Increased price = 100 + 25 = 125

Required percentage of reduction

$=\frac{Changeinprice}{Increasedprice}\times 100$

$=\frac{25}{125}\times 100$

= 20%