the price of oil increased by 20 if the expenditure is..., Percentage, General Mathematics

Question:The price of oil increased by `20%`. If the expenditure is not allowed to increase, the ratio between the reduction in consumption and the original consumption is :

A `1 : 3` 
B `1 : 4` 
C `1 : 5` 
D `1 : 6`

/114

+ AnswerC

+ ExplanationLet original consumption be 1 unit costing Es. `100`

New cost`= Rs. 125`

New consumption 

`= (1/125 xx 100)`

`= 4/5 unit`

`(Reduction in consumption/Original consumption)`

`= ((1 - 4/5))/1`

`= 1/5 i. e, 1 : 5.

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