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Arithmetic Aptitude :: Percentage

10. If the price of petrol increases by 25%, by how much must a user cut down his consumption so that his expenditure on petrol remains constant?

Answer: Option B

Explanation :

Let the petrol 1 unit initial price be rs 100.
25% increase on rs 100= rs 125
since expenditure to remain constant 125*x= 100*1
x=.80 unit
So, consumer reduces =.20 unit i.e 20%

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