If the price of petrol is increased by 20%, by what percentage should the consumption be decreased by the consumer if the expenditure on petrol remains unchanged?
Q1. If the price of petrol is increased by 20%, by what percentage should the consumption be decreased by the consumer if the expenditure on petrol remains unchanged?
Answer: 16.67%
Explanation: If price rises by 20%, to keep expenditure constant consumption must fall by 20/120 = 1/6 ≈ 16.67%.