If the price of petrol be raised by 12.5% , find by what percentage should a consumer decrease the consumption of petrol so that there is no change in his monthly expenditure on petrol?

Correct answer: C. 11.11%

  • A. 12.5%
  • B. 15%
  • C. 11.11%
  • D. 20%

Explanation

To solve this problem, you need to understand the concept of maintaining a constant expenditure when the price of a product changes. If the price of petrol increases by 12.5%, the consumer can reduce their consumption to keep their expenditure the same. The formula for calculating the required percentage decrease in consumption is given by:Percentage decrease = (Price Increase % / (100 + Price Increase %)) x 100Substituting the given values, we have:{12.5 / (100 + 12.5)} x 100 = 11.11%Therefore, the consumer should decrease their petrol consumption by 11.11% to maintain the same monthly expenditure. Other options suggest incorrect percentage changes that would either increase or decrease the expenditure from the original amount.

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Quantitative reasoning applies arithmetic and basic algebra to numerical relationships, including percentages, ratios, averages, fractions, proportions, profit and loss, rates, time, work and measurement. Questions focus on translating words into equations, choosing an efficient method and checking whether the result is numerically reasonable.

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