The price of edible oil is increased by 30%. To maintain the budget, Reena reduces the consumption of this oil by 18%. Find the increased percentage in expenditure due to this edible oil.

Correct option is B

Given:

The price of edible oil is increased by 30%.

Reena reduces the consumption of edible oil by 18%.

Formula Used:
New expenditure = (New price × New quantity)
Percentage increase in expenditure =$$\frac{\text{New expenditure - Old expenditure}}{\text{Old expenditure}} \times 100$$​​

Solution:

Let the initial price of the oil be P and the initial quantity consumed be Q.
The initial expenditure is P × Q.

The new price becomes $$P \times (1 + 0$$​.30) = 1.30P.

The new quantity consumed becomes Q $$\times$$​ (1 - 0.18) = 0.82Q.

The new expenditure is 1.30P$$\times 0.82Q = 1$$​.066PQ.

The percentage increase in expenditure is:

​$$\frac{1.066PQ - PQ}{PQ} \times 100 = \frac{0.066PQ}{PQ} \times 10$$​0 = 6.6%

The increased percentage in expenditure is 6.6%.