The price of oil is increased by 25%. If the expenditure is not allowed to increase, the ratio between the reduction in consumption and the original consumption is
Answers
Answer:
We need to find the increase in the expenditure on this account in account to the condition that the price has increased by 25%.
We can solve this by assuming a base price.
We can take any amount because eventually, we have asked for a relative increase so the result would be the same.
We can assume that let the original price be Rs. 100.
Now we have the condition that the price has increased by 25%.
We need to find 25% of Rs.100.
Therefore, 25% of 100 = 25100×100=2525100×100=25 .
Adding Rs. 25 to Rs. 100 we get, 100+25 = Rs.125.
Hence, the increased price is Rs. 125.
In order to or not to increase the expenditure, the family needs to be the reduction.
The reduction has by the same amount that is Rs.25
Therefore, now the reduction of 25 out of the new price of Rs.125.
We need to calculate the percentage therefore; we need to multiply the ratio by 100.
Therefore, the percentage of reduction = 25125×100=2025125×100=20 .
Answer:
Ratio between the reduction in consumption and the original consumption is 1:5.
Step-by-step explanation:
Let the original consumption be 1 unit
now,
Formula used:
If the price of a commodity increases by R%, then the reduction in consumption so as not to increase the expenditure is:
Reduction in consumption = {R*100÷(100+R)}%
here
R is 25%= 25÷100
using the formula,
= {[(25÷100)*100]÷(100+25)}
=25/125
=1/5
the ratio of reduction in consumption: original consumption
=1/5:1
=1:5
#spj2