Question
The price of kerosene increases by 20% and then by a
further (20/3) %Â . Find the percentage by which the consumption of kerosene must be reduced so that expenditure on kerosene remains the same.Solution
Let the original price of kerosene be Rs. '100x' Then, increased price of kerosene = 100x X (120/100) X (320/300) = Rs. '128x' So, percentage by which consumption must be reduced = 100 - (100x/128x) X 100 = 100 - 78.125 = 21.875%
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