Question : If the price of salt decreases by 20%, then by what percentage should consumption be increased to keep the expenditure same?
Option 1: 26%
Option 2: 27%
Option 3: 25%
Option 4: 24%
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Correct Answer: 25%
Solution : Let the price of 100 units of salt be Rs. 100. Current price of salt after 20% depreciation = (100 – 20% of 100) = Rs. 80 Amount of salt that can be bought in Rs 100 = $\frac{100}{80}\times100$ = 125 units Percentage increase in consumption = $\frac{\text{New consumption – Old consumption}}{\text{Old consumption}}\times 100$ = $\frac{125-100}{100}\times 100$ = $25\%$ Hence, the correct answer is 25%.
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