When the price of sugar gets raised by 50%, a person increases his expenditure on sugar only by 25%. By what percentage (correct up to two decimal places) should he reduce his consumption of sugar?

Let the price of the sugar be 100.

According to question,

• Price of sugar gets raised by 50%.

Raised price = $$100+\frac{50}{100}\times\ 100=150$$

• A person want to increase his expenditure only by 25%

i.e; $$100+\frac{25}{100}\times\ 100=125$$

Now the Increased price of sugar to the price of sugar due to increased expenditure : 150 : 125 

As we know, 

Consumption is inversely propotional to the price 

Ratio of consumption = 125 : 150 

Required decrease percentage = $$\frac{25}{150}\times\ 100=16\ \frac{\ 2}{3}\%$$

i.e 16.67 % 

Hence, Option C is correct.