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%.