Price of diesel increased from Rs 45/litre to Rs 50/litre. How much should the consumption of diesel be reduced (in %) so as to increase expenditure by only 5%?
Show answer & explanation
Correct answer: A
Explanation
The correct answer is option 1 i.e. 5.5
Price of diesel increased from Rs 45/litre to Rs 50/litre.
Suppose the initian consumption is 10 and reduced consumption is 'x'
Initial expenditure = 45 × 10 = 450
A/Q:
50 × x = 450 × 1.05
⇒ x = 9.45
% reduction in consumption = (10 - 9.45)/10 × 100 = 5.5%