Question

When the price of a gas cylinder is increased by 50%, by what percentage should the household consumption be reduced such that there is no increase in the expenditure?

Answer 1

Step-by-step explanation:

expenditure = price x quantity consumed

price, p is increased by 50%

= p×(1+50%)= 1.5p

let quantity consumed,q be decreased by x%

=q×(1-x%)

pq= pq×1.5(1-x%)

1-x%=1/1.5=2/3

x=1/3%=33.33%

consumption reduced by 33.33%