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The price of cooking gas has increased by 25 %. By what percent should a family reduce the use of cooking gas so as not to increase the expenditure in this account ?

Solution

Correct Option: 2

Let original price be 100 and consumption be 1. Expenditure =100= 100. New price =125= 125. To keep expenditure same, new consumption =100125=0.8= \frac{100}{125} = 0.8. Reduction =10.8=0.2=20%= 1 - 0.8 = 0.2 = 20\%.

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