Question : If the price of petrol is increased by 28%, by what percentage should the consumption be decreased by the consumer if the expenditure on petrol remains unchanged? (Correct to 2 decimal places)
Option 1: 12.35%
Option 2: 21.88%
Option 3: 20.25%
Option 4: 25.75%
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Correct Answer: 21.88%
Solution : Given that the price of petrol has increased by 28% Let the price of petrol before the increase be Rs. 100$a$ per 1000 ml ⇒ New price = 100$a$ × 128% = Rs. 128$a$ Now if the consumer wants to maintain the expenditure as before he will still buy petrol for Rs. 100a In Rs. 100a he will get = $\frac{1000}{128a}$ × 100$a$ = 781.25 ml ⇒ Consumption decrease = 1000 ml - 781.25 ml = 218.75 Decrease percentage = $\frac{218.75}{1000}$ × 100 = 21.875 ≈ 21.88% Hence, the correct answer is 21.88%.
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