If cost of sugar increases by 25%. How much percent consumption of sugar should be decreased in order to keep expenditure fixed?

15%

20%

25%

None of these

Use the formula:

% decrease = (increase ÷ (100 + increase)) × 100

= (25 ÷ 125) × 100 = 20%

So, to keep the total expenditure the same, consumption must decrease by 20%.