The price (per litre) of petrol increases by 50%. By what percent should its consumption be reduced such that the expenditure on it increases by 14% only?
Show answer & explanation
Correct answer: B
Explanation
The correct answer is Option 2 i.e. 24% .
Let original price = 100, new price = 150 (50% increase)
Let original consumption = 100, original expense = 100 × 100 = 10,000
Let new consumption = x, new expense = 150 × x = 10,000 × 1.14 = 11,400
So: 150 × x = 11,400
x = 11,400 ÷ 150 = 76
Consumption reduced from 100 to 76 → Reduction = 24%