If the sugar price is increased by 25% by how much percent consumption should be reduced that expense remains same.
Answer & explanation
Correct answer: option 2
The correct answer is Option 2: 20%
Step 1: Use the formula
Required reduction %
= Increase % / (100 + Increase %) × 100
Step 2: Substitute values
= 25 / (100 + 25) × 100
= 25 / 125 × 100
= 20%