Question

When the price of a gas cylinder is increased by 20%,by what percent should the household reduce his consumption such that there is no increase in his expenditure?

Answer 1

Answer:

Price of gas cylinder = 100

increase = 120

120x(100-D)/100=100

100-D=100x100/120

=83 1/3

D=100-83 1/3=16 2/3%

Consumption the reduced by

16 2/3%

.