The price of cooking oil has increased by 25%. By what percent should a family reduce the consumption of cooking oil so as not to increase the expenditure in this account?
Answer & explanation
Correct answer: option 2
Let,
Initial -------Price = 100 Quantity = 10 Expenditure (P x Q) = 1000
After --------Price = 125 Quantity = x [8] Expenditure (P x Q) = 1000
So,
Quantity = \(\frac{ 1000}{125 }\) = 8
Initial qty = 10, New qty = 8
Reduction = \(\frac{2 }{10 }\) x 100 = 20%