Price of salt is increased by 25% in order not to increase the expenditure a lady must reduce her comsumption by ?

A. 25 %

B. 20 %

C. 30 %

D. None of these

Answer : B. 20 %

Explanation:

If the price of a commodity increases by R%, then the reduction in consumption so as not to increase the expenditure is [ (R / 100 + R) * 100 ]%
Here R% = 25%
Hence % decrease in the consumption of sugar [ (25 / 100 + 25) * 100 ]%
= [ (25 / 125) * 100 ]%
= [ (1 / 5) * 100 ]%
= 20%

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