Question

The price of sugar is increased by $25\%$. If a family wants to keep its expenses on sugar unaltered, then the family will have to reduce the consumption of sugar by

• A. $20\%$
• B. $50\%$
• C. $40\%$
• D. $25\%$

Answer 1

The correct option is A $20\%$

Let initial price of sugar be $\text{Rs.}x.$
Then, increased price of sugar $=\text{Rs.}1.25x$
But, the family wants to keep expenses on sugar unaltered, so they will have to cut $\text{Rs.}0.25x$ in the expenses to keep it to $\text{Rs.}x.$
$\therefore$ Reduction in consumption
$=\frac{1.25x-x}{1.25x}\times 100$
$=\frac{25}{125}\times 100=20\%$