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  1. The price of an edible oil is increased by 25%. To maintain the budget, Sushma reduces the consumption of this oil by 20%. The increase in expenditure due to this edible oil is:
    1. 0
    2. 1
    3. 2
    4. 3
Correct Option: A

Cost of edible oil = 100 per kg.
Consumption = 1 kg.
Again,
New price = 125 per kg.
Consumption = 0.8 kg.
Expenditure = Rs. (125 × 0.8) = Rs. 100
OR
Percentage effect

=x + y +
xy
%
100

=25 - 20 -
25 × 20
% = 0%
100



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