Final answer:
To not increase expenditure due to a 25% price increase, the desi ghee consumption should be reduced by 20%. This is calculated using the percent decrease formula.
Step-by-step explanation:
The question you asked pertains to percent decrease. If the price of desi ghee increases by 25%, and the family wants to maintain the same expenditure on desi ghee, they will need to reduce their consumption. The formula we use for this is: New Quantity = Old Quantity * (1 – Reduction Percentage). Therefore, Reduction Percentage = (Old Quantity – New Quantity) / Old Quantity
The Old Quantity can be represented by 100%. Considering the price increase, your new expenditure for the same 100% quantity is now 125% of your budget. If you want to fit into your original budget of 100%, the reduction percentage would be: (125–100)/125=20%. Hence, the family should decrease their consumption of desi ghee by 20% to stay within their original budget, so the correct answer is (d) 20%.
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