Find the Percentage ???


Q: If the price of oil increases by 25%, by what percentage should its consumption be reduced so that the total expenditure on oil does not increase ?


Options: (a) 16% (b) 24% (c) 25% (d) 20%


Solution:
When the price increases by 25%, the new price becomes 125 (from 100).
To keep the total cost constant:100 / 125×100 = 80


Thus, consumption must be reduced by 100 - 80 = 20%