The price of petrol has increased by 25%. By how much percent a car owner should reduce his consumption of petrol? So that expenditure on petrol would not be increased?
Q1. The price of petrol has increased by 25%. By how much percent a car owner should reduce his consumption of petrol? So that expenditure on petrol would not be increased?
Answer: 20%
Explanation: If price increases by 25%, to keep expenditure constant the consumption must decrease by 25/125 = 1/5 = 20%.