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Percentage change $ = \dfrac{\text{Final value – Initial value}}{\text{Initial value}} \times 100\%$

$\implies \%$ change $= \dfrac{1-1.25}{1.25} \times 100\% = \dfrac{-025}{1.25} \times 100\% = -20\%$ (Here, negative represent reduction in the price)

S, the correct answer is $(A).$
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