Problema Solution
if the price of oil falls by 25%,how much in percentage the oil consumption can be increased with the same budget?
Answer provided by our tutors
let
p = the price of oil per gallon
B = the budget
before the drop of the price the oil consumption is B/p
after the drop of the price the new price is 0.75p and the oil consumption is B/(0.75p)
the increase % of consumption is
(B/(0.75p) - B/p)/(B/p) = 1/0.75 - 1 = 0.25/0.75 = 0.333 or 33.3%