Bhaskaran reduces his consumption by 40% when the price of oil is increased by 40%. Then find Bhaskaran's percentage decrease in expenditure.?
The original consumption be 100 units
And let original price be Rs.100 per unit
original expenditure for 100 units = price per unit x 100 units = (100 x 100)= Rs.10,000
After decreasing the consumption to 40%, his new consumption = 60 units.
After increasing the price of to 40%, the new price per unit = Rs.140 per unit.
Then new expenditure = new price per unit x 60 units = 140 x 60 = Rs.8400
Decrease in expenditure = Rs.(10000 - 8400) = Rs.1600
Percentage decrease in expenditure = Decrease in expenditure / Original Expenditure x 100% = 1600/10000 x 100 = 16%
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