melguy wrote: Q1. If price decreases by 25%, by what % should consumption increase so that the expenditure does not
increase?

a. 20%
b. 25%
c. 33.33%
d. 40%
e. 75%

A fast approach is to choose some nice numbers to work with.
Say, some item costs $4 each, and you typically buy 6 items for a total cost (expenditure) of $24

If the price decreases by 25%, then the new price per item is $3.
If the total cost (expenditure) must be $24, we can now buy 8 items.

So, to keep the expenditure the same, we must increase consumption from 6 to 8. This represents a [spoiler]33 1/3%[/spoiler] increase.
Answer = C

melguy wrote: Q2. If speed increases by 33.33%, what is the percent reduction in the time taken to travel the same distance?

a. 20%
b. 25%
c. 33.33%
d. 66.66%
e. 75%

Choose nice values and plug in.

Time = distance/speed

Let distance = 12 miles, and let original speed = 3 miles per hour.
So time = 12/3 = 4 hours


If speed increases by 33 1/3%, then the new speed is 4 miles per hour.
So time = 12/4 = 3 hours

So, the travel time decreased from 4 hours to 3 hours.
This represents a [spoiler]25%[/spoiler] decrease.
Answer = B


Cheers,
Brent