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The price of the sugar rise by 25%. If a family wants to keep their expenses on sugar the same as earlier, the family will have to decrease its consumption of sugar by

a) 25%
b) 20%
c) 80%
d) 75%

Answer: b
Explanation: Let the initial expenses on Sugar was Rs. 100.
Now, Price of Sugar rises 25%. So, to buy same amount of Sugar, they need to expense,
= (100 + 25% of 100) = Rs. 125.
But, They want to keep expenses on Sugar, so they have to cut Rs. 25 in the expenses to keep it to Rs. 100.
% decrease in Consumption,
$$\frac{{25}}{{125}} \times 100 = 20\% $$

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