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If the price of sugar rises by 25%, by what percent must consumption be reduced to keep expenditure unchanged?
A15%
B25%
C20%
D30%
Answer & Solution
Correct answer: C. 20%
1. Expenditure = price * consumption.
2. New price = 1.25 * old price.
3. For unchanged expenditure, new consumption = old / 1.25 = 0.80 * old.
4. So consumption must drop by 20%.
5. The rule: if price rises by r%, cut consumption by r/(100+r) * 100.
_Source: SSC CGL Quantitative Aptitude (Percentages), R.S. Aggarwal style and standard practice_
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