If the price of oil increases by 25 percent and Arpit increases the expenditure on oil by 10 percent, then by how much percent will he reduce the quantity of oil purchased?
Show answer & explanation
Correct answer: D
Explanation
The correct answer is option 4 i.e. 12 percent.
Let the price of oil be 100 units
If the price of oil increases by 25 percent,
Now, the price of oil = 100 + 25 = 125 units
Arpit increases the expenditure on oil by 10 percent
Now, the increased expenditure of oil is 110 units
Hence, the percentage of reduced quantity of oil = [(125 - 110)/125] × 100 = 3 × 4 = 12%