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?
A25%
B67%
C50%
D20%
Answer:
D. 20%
Read Explanation:
Let the original price of grocery be Rs. 100
Increased price = Rs. 25
Reduction in consumption = [(25/125) × 100]%
⇒ 20%