Maintain expenditure amid price rise: If the price of sugar rises by 25%, by what percentage must a family reduce consumption to keep its sugar expense unchanged?

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:

  • Price increase r = 25%.
  • Expenditure = Price * Quantity remains constant.

Concept / Approach:
Required decrease = r/(100 + r) * 100%.


Step-by-Step Solution:

Decrease = 25 / 125 * 100%.= 1/5 * 100% = 20%.

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:

  • 21% and 22% are close but incorrect; exact math gives 20%.
  • 25% would overcompensate.

Common Pitfalls:
Subtracting 25 percentage points from quantity without using the inverse ratio.


Final Answer:
20%

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