The price of diesel incresed by 16% , A person wants to increase his expenditure on diesel by 10% only, By what percentage , correct to one decimal place, should he reduce his consumption ?
Show answer & explanation
Correct answer: B
Explanation
The correct answer is option 2 i.e. 5.2%
Let the price and quantity of diesel be Rs. 100 and 100 liters respectively.
Total expenditure = Rs. 100 × 100 = Rs. 10,000
Increased expenditure = 10,000 × 110% = 10000(110)/100 = Rs. 11,000
The increased price of diesel = 100 × 116% = 100(116/100) = Rs. 116
New consumption of diesel = 11000/116 = 94.8 liters
Percentage decrease in consumption of diesel = [(100 - 94.8)/100] × 100 = 5.2%