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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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