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Price of tea increases by 25%. By how much percent the consumption of tea should be reduced, So that expenditure doesn’t change?
1. 20%
2. 25%
3. 33.33%
4. 16.67%

1 Answer

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Best answer
Correct Answer - Option 1 : 20%

Given:

Price of tea increase = 25%

Formula Used:

Reduction in consumption = (Increase% × 100)/(100 + Increase%)

Calculation:

Reduction in consumption = (Increase% × 100)/(100 + Increase%)

= (25 × 100)/(100 + 25)

= 20% 

∴ The consumption should be reduced by 20%.

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