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?
Show answer & explanation
Correct answer: B
Explanation
The correct answer is option 2 i.e. 
%, decrease
Price × Consumption = Expenditure
Let the price and consumption be 10, then Expenditure will be 10 × 10 = 100
The price of oil is increased by 20%. However, the expenditure on it increases by 15% Hence New price and expenditure will be 12 and 115 respectively
New consumption = 115/12
% Decrease = [{10 - (115/12)}/10] × 100 = {(5/12) × 10}% = 25/6 %