If the price of the petrol is increased by 30%, by how much percent a car owner must reduce his…
To keep spending the same after a price rise of \(r\%\), consumption must fall by \(\frac{r}{100+r}\times100\%\). Here that is…
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If the price of the petrol is increased by 30%, by how much percent a car owner must reduce his consumption in order to maintain the same budget ?
Answer and explanation
Correct answer C
To keep spending the same after a price rise of , consumption must fall by . Here that is . The cut is less than 30% because it is reckoned against the new, higher price; check: .
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NCHM Joint Entrance Examination (NCHM JEE)