The price of cooking oil has increased by 25%.By what percent should a family reduce the consumption of cooking oil so as not to increase the expenditure in this account?20%25%18%16%
Question
The price of cooking oil has increased by 25%.By what percent should a family reduce the consumption of cooking oil so as not to increase the expenditure in this account?20%25%18%16%
Solution
To solve this problem, we need to find the percentage decrease in consumption that would offset the 25% increase in price.
Here are the steps:
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Let's assume the original price of the cooking oil is 1.
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After the price increase by 25%, the new price becomes $1.25 per unit.
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To keep the expenditure the same (1 / $1.25 = 0.8 units.
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This means the family should now consume 0.8 units of cooking oil to keep the expenditure the same.
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To find the percentage decrease in consumption, we subtract the new consumption from the original consumption, divide by the original consumption, and then multiply by 100%: ((1 - 0.8) / 1) * 100% = 20%.
So, the family should reduce their consumption of cooking oil by 20% to avoid an increase in expenditure.
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