The price (per litre) of petrol increases by 60%. By what percent should its consumption be reduced such that the expenditure on it increases by 12% only?
Show answer & explanation
Correct answer: A
Explanation
The correct answer is Option 1 i.e. 30%.
Required Percentage Reduction in Consumption = ((Price Increase Percentage − Expenditure Increase Percentage) / (100 + Price Increase Percentage)) × 100
Required Percentage Reduction in Consumption = ((60 − 12) / (100 + 60)) × 100
= (48 / 160) × 100
= 30%