The price of sugar goes up by 25%. By how much percentage must a family reduce their consumption of sugar so that the expenditure on sugar remains the same?

Correct option is D

Given:

Price of sugar increased by 25%

Solution:

Let the price of sugar be Rs. 100

Increased price = $$100\left(1+\frac{25}{100}\right) = Rs\ 125$$​​

Reduction on Rs 125 = Rs 25

Reduction on Re 1  = $$\frac{25}{125}$$​​

Reduction on Rs 100 =$$\frac{25}{125}\times 100 = 20\%$$