Difficulty: Easy
Correct Answer: 20%
Explanation:
Introduction / Context:
Another inverse-percentage adjustment: to keep spending the same when price increases, consumption must drop in the inverse ratio.
Given Data / Assumptions:
Concept / Approach:
Required decrease = r/(100 + r) * 100%.
Step-by-Step Solution:
Verification / Alternative check:
Assume initial price 100, quantity 1 ⇒ spend 100. New price 125. New quantity for same spend = 100/125 = 0.8 ⇒ 20% reduction.
Why Other Options Are Wrong:
Common Pitfalls:
Subtracting 25 percentage points from quantity without using the inverse ratio.
Final Answer:
20%
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