Multiple choice

The price of petrol increases by 12.5%. By how much percentage must a person reduce his consumption so that his expenditure on it does not increase?

  1. 10.11%

  2. 11.11%

  3. 12.11%

  4. 12.21%

  5. None of these
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

Let original consumption = c Let initial price = p Let Initial expenditure = e e = pc...(i) Let final consumption = k New price = 1.1.25p e = 1.125 pk....(ii) Equating (i) and (ii), we get pc = 1.125pk or k = c/1.125 = 0.8888c Thus, reduction = (100 - 88.88)5 = 11.11 % Hence, option 2 is correct.

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