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    Question

    If the price of a milk packet is reduced by 20%, by what

    percentage should a family increase its consumption of milk to ensure that their total expenditure on milk remains unchanged?
    A 20% Correct Answer Incorrect Answer
    B 25% Correct Answer Incorrect Answer
    C 50% Correct Answer Incorrect Answer
    D 65% Correct Answer Incorrect Answer

    Solution

    ATQ;
    Let initial price of milk be Rs. 100 per liter and initial consumption be 1 liter
    So, initial total expenditure = Rs. 100
    Reduced price of milk = {100 – (20% of 100)} = Rs. 80
    So, new consumption = {100/80} = (5/4) liters
    Therefore, percentage increased = [{(5/4) – 1}/1] × 100 = 25%

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