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    Question

    The price of fuel increases by 10%, and a person reduces

    his usage by 5%. Find the percentage increase or decrease in his expenditure.
    A 28% increase Correct Answer Incorrect Answer
    B 12% decrease Correct Answer Incorrect Answer
    C 18.5% decrease Correct Answer Incorrect Answer
    D 4.5% increase Correct Answer Incorrect Answer

    Solution

    ATQ,

    Let the original usage be ‘x’ units and the price per unit be Rs. ‘y’.

    Initial expenditure = Rs. xy

    New increased price = Rs. 1.10y

    Reduced usage = 0.95x

    New expenditure = 1.10y × 0.95x = Rs. 1.045xy


    Image

    Hence, the expenditure increases by 4.5%.

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