Correct Answer - Option 3 : 20%

**Given:**

Rate of sugar increases by 25%

**Formula used:**

Total expenditure = Rate × Consumption

**Calculation:**

Let the initial price of sugar be Rs. 100/kg and initial consumption be 100 kg

Total expenditure = Rs. 100 × 100

⇒ Rs. 10,000

Now, New rate of sugar = Rs. 100 × (125/100)

⇒ Rs. 125

New consumption = 10000/125 kg

⇒ 80 kg

Decrease in consumption = [(100 – 80)/100] × 100%

⇒ 20%

**∴ The decrease in consumption is 20%**