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Question
In the new budget, the price of petrol rose by 10%. By how much percent must one reduce the consumption so that the expenditure does not increase?
Solution
We have to reduce the consumption such that the expenditure does not increase.
For this, we use the following formula:
\[\left( \frac{r}{r + 100} \right) \times 100,\text{ where r = percentage rise in the price of the commodity }\]
\[ \therefore\text{ Percentage reduction in the consumption }= \left( \frac{10}{10 + 100} \right) \times 100 = \left( \frac{10}{110} \right) \times 100 ( \because r = 10 \% )\]
\[ = 9\frac{1}{11}\]
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