The price of oil is increased by 25% , If the expenditure is not allowed to increase , the ratio between the reduction in consumption and the original consumption is
Let original consumption be 1 unit costing Rs. 100.
New cost = Rs. 125
New consumption = ` (1/125 xx 100) = 4/5 `unit
`:.` Reduction in consumption/ Original consumption = `((1 - 4/5))/(1) = 1/5` i.e. , 1 : 5.
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