Question

The price of oil decreased by 30% . what should be the increase in consumption so as to keep the expenditures constant?

Answer 1

Answer:

42.85%

Step-by-step explanation:

Let say earlier price = x

Consumption = y

Expense = xy

Reduced price = x(1-30/100) = 0.7x

New consumption = expense / reduced price

= xy/(0.7x)

= 10y/7

Increase in consumption = 10y/7-y = 3y/7

Increase % consumption = ((3y/7)/y) ×100 = 300/7

= 42.85%