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  1. The prices of sugar is incerased by 25%. If a family wants to keep its expenses on sugar unaltered, then the family will have to reduce the consumption of sugar by
    1. 20%
    2. 21%
    3. 22%
    4. 25%
Correct Option: A

Let original price be ₹ 100
Then, increased price = ₹ 125

∴ Reduction in consumption
= [(125 - 100)/125 ] x 100%
= (25/125) x 100 %
= 20%



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