Question 74

The price of oil is increased by 20%. However, the expenditure on it increases by 15%. What is the percentage increase or decrease in the consumption of oil?

Solution

Let original price and consumption on oil be Rs. 10 each

=> Expenditure initially = $$10\times10=Rs.$$ $$100$$

New price after 20% increase = Rs. 12 and new expenditure = Rs. 115

=> New consumption = $$\frac{115}{12}$$

$$\therefore$$ Decrease in consumption = $$\frac{10-\frac{115}{12}}{10}\times100$$

= $$\frac{5}{12}\times10=4\frac{1}{6}\%$$

=> Ans - (B)

Share on Whatsapp Share on Whatsapp

Create a FREE account and get: