Question

In the new budget, the price of petrol rose by 10%. By how much percent must one reduce the consumption so that the expenditure does not increase?

Answer 1

Given details are,

Increase in petrol price by = 10%

Reduction in consumption while having same expenditure =

(increase%)/(100+increase%) × 100

= 10/(100+10) × 100

= 1000/110

= 100/11

= 9 1/11%

∴ At the cost of same expenditure one can reduce 9 1/11% of consumption of petrol.