The price of cooking oil increased by 25%. Find by how much percentage a family must reduce its consumption in order to maintain the same budget?
Show answer & explanation
Correct answer: B
Explanation
The correct answer is Option 2 i.e 20%
Initially, let the price of the cooking oil be "x".
Let the consumption be "y".
After the price increase, let the price be "x1" and consumption be "y1"
ATQ,
⇒ x × y = x1 × y1
⇒ x × y = 1.25x × y1
⇒ y1 = (x × y) / 1.25x
⇒ y1 = 0.8y
Hence, the reduction in consumption in 20%