Multiple choice

If the price of onions increases by 25% and Anita intends to spend nothing extra on onions, then by what percent will she have to reduce the quantity of onions purchased?

  1. 20%

  2. 10%

  3. 25%

  4. 15%

  5. 26%
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

If price increases by 25% (factor of 1.25), to keep spending constant, the quantity must be multiplied by 1/1.25 = 0.8. This represents a 20% reduction.

AI explanation

Using the formula for percentage reduction in consumption to keep expenditure constant, the reduction is (R / (100 + R)) * 100. Substituting the 25% price increase gives (25 / 125) * 100 = 20%. She must reduce the quantity purchased by 20%.

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