Question

If the price of a grocery item consumed by a family increases by 25%, then by what percentage should its consumption reduce, so as to keep the expenditure on this item unchanged?

• A. 25%
• B. 67%
• C. 50%
• D. 20%

Answer 1

Answer:

D. 20%

Let the original price of grocery be Rs. 100 Increased price = Rs. 25 Reduction in consumption = [(25/125) × 100]% ⇒ 20%