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If the price of petrol is increased by 2...

If the price of petrol is increased by 20%,by what percentage should the consumption be decreased by the consumer, if the expenditure on petrol remains unchanged?

A

`16(2)/(3)%`

B

`6(2)/(3)%`

C

`8%`

D

`15%`

Text Solution

AI Generated Solution

The correct Answer is:
To solve the problem step by step, we need to determine the percentage decrease in consumption when the price of petrol increases by 20%, while keeping the expenditure constant. ### Step-by-Step Solution: 1. **Understand the relationship between price, consumption, and expenditure**: - Let the original price of petrol be \( P \). - Let the original consumption be \( C \). - The original expenditure on petrol is given by the formula: \[ \text{Expenditure} = \text{Price} \times \text{Consumption} = P \times C \] 2. **Calculate the new price after the increase**: - The price of petrol is increased by 20%. Therefore, the new price \( P' \) can be calculated as: \[ P' = P + 0.20P = 1.20P \] 3. **Set up the equation for unchanged expenditure**: - Since the expenditure remains unchanged, we can set up the equation: \[ P \times C = P' \times C' \] - Substituting \( P' \) into the equation gives: \[ P \times C = 1.20P \times C' \] 4. **Simplify the equation**: - Dividing both sides by \( P \) (assuming \( P \neq 0 \)): \[ C = 1.20 \times C' \] - Rearranging gives: \[ C' = \frac{C}{1.20} \] 5. **Calculate the new consumption in terms of percentage**: - To find the percentage decrease in consumption, we first find the decrease in consumption: \[ \text{Decrease in consumption} = C - C' = C - \frac{C}{1.20} = C \left(1 - \frac{1}{1.20}\right) \] - This simplifies to: \[ C \left(1 - \frac{1}{1.20}\right) = C \left(\frac{1.20 - 1}{1.20}\right) = C \left(\frac{0.20}{1.20}\right) = C \left(\frac{1}{6}\right) \] 6. **Express the decrease as a percentage of the original consumption**: - The percentage decrease in consumption is then given by: \[ \text{Percentage decrease} = \left(\frac{\text{Decrease in consumption}}{C}\right) \times 100 = \left(\frac{C \left(\frac{1}{6}\right)}{C}\right) \times 100 = \frac{1}{6} \times 100 \] - Calculating this gives: \[ \frac{100}{6} = 16.67\% \] - Thus, the percentage decrease in consumption is \( 16 \frac{2}{3}\% \). ### Final Answer: The consumer should decrease their consumption by \( 16 \frac{2}{3}\% \). ---
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