1.  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. 21%
C. 22%
D. 25%

Answer: Option A

Explanation:

Let origin price be ₹100.

Then, increased price = ₹ 125

Reduction in consumption

= 125 - 100 x 100 %
125

= 25 x 100 %  = 20%.
125


Fast Track Method:

Here, a = 25%

According to the formula,

Reduction in consumption

= a x 100 %
100 + a

= 25 x 100 %  = 20%.
125