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# If the price of gasoline increases by 25% and Ron intends to spend onl

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Math Expert
Joined: 02 Sep 2009
Posts: 65187
If the price of gasoline increases by 25% and Ron intends to spend onl  [#permalink]

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15 Mar 2016, 11:40
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45% (medium)

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69% (02:03) correct 31% (01:56) wrong based on 149 sessions

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If the price of gasoline increases by 25% and Ron intends to spend only 15% more on gasoline, by how much percent should he reduce the quantity of gasoline that he buys?

A. 6.66%
B. 8%
C. 10%
D. 12%
E. 12.5%

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If the price of gasoline increases by 25% and Ron intends to spend onl  [#permalink]

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15 Mar 2016, 18:46
1
Let price of original price of gasoline = 10$and let original consumption of gasoline = 10 Amount spend on gasoline originally = 10*10 = 100$

the price of gasoline increases by 25% and Ron intends to spend only 15% more on gasoline
Increased price of gasoline = 12.5$Now Ron intends to spend on gasoline =1.15*100 = 115$
Consumption of gasoline needs to be = 115/12.5
= 1150/125
= 46/5 = 9.2
Reduction in consumption of gasoline = 10-9.2 = .8
% reduction in consumption of gasoline = .8/10 * 100%
= 8%
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Re: If the price of gasoline increases by 25% and Ron intends to spend onl  [#permalink]

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14 May 2016, 10:15
2
Bunuel wrote:
If the price of gasoline increases by 25% and Ron intends to spend only 15% more on gasoline, by how much percent should he reduce the quantity of gasoline that he buys?

A. 6.66%
B. 8%
C. 10%
D. 12%
E. 12.5%

Let he consumes 10 ltr RS 10 so he spends Rs 100
As er question he intends to spend 15% more (of 100 in our case)=Rs 115
and price increased by 25% =Rs. 12.5 (10+25% of 10)
let he reduces quantity by X lts. then consumed(new reduced) quantity= 10(1-X/100)
Spending amount=Price of gasoline*Quantity
115=12.5*10(1-X/100)
X=8%
Ans B
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If the price of gasoline increases by 25% and Ron intends to spend onl  [#permalink]

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08 Sep 2017, 15:02
2
rohit8865 wrote:
Bunuel wrote:
If the price of gasoline increases by 25% and Ron intends to spend only 15% more on gasoline, by how much percent should he reduce the quantity of gasoline that he buys?

A. 6.66%
B. 8%
C. 10%
D. 12%
E. 12.5%

Let he consumes 10 ltr RS 10 so he spends Rs 100
As er question he intends to spend 15% more (of 100 in our case)=Rs 115
and price increased by 25% =Rs. 12.5 (10+25% of 10)
let he reduces quantity by X lts. then consumed(new reduced) quantity= 10(1-X/100)
Spending amount=Price of gasoline*Quantity
115=12.5*10(1-X/100)
X=8%
Ans B

For wondering minds, "Rs" in the solution above is short for "Rupee" - a monetary unit in India.

This is how I solved...

Let the initial cost of gas before the hike be $100/gal Price hike given = 25% => New gas price per gallon is$125

Also given, Ron can only spend 15% more of what he used to afford. It is to be understood from the prompt that he was able to afford a full gallon (which means he used to get 1 gal of gas) before the hike. So, he was able to afford $100 before the hike but now he can only afford 15% more of$100. Therefore, he could only pay $115. You get what you pay, so instead of getting a full gallon of gas, he will now only get 0.92 gal [For$125 you get 1 gal, for $115 - how many? => $$\frac{1}{125}$$*115]. Finally, find the percentage decrease in the amount of gas from before and now. Percentage Decrease =$$\frac{0.92 - 1}{1}$$*100 GMAT Club Legend Status: GMATINSIGHT Tutor Joined: 08 Jul 2010 Posts: 4345 Location: India GMAT: QUANT EXPERT Schools: IIM (A) GMAT 1: 750 Q51 V41 WE: Education (Education) Re: If the price of gasoline increases by 25% and Ron intends to spend onl [#permalink] ### Show Tags 08 Sep 2017, 23:59 2 1 Bunuel wrote: If the price of gasoline increases by 25% and Ron intends to spend only 15% more on gasoline, by how much percent should he reduce the quantity of gasoline that he buys? A. 6.66% B. 8% C. 10% D. 12% E. 12.5% Let price of gasoline earlier = 100 So price of gasoline Later = 125 (25% higher) Let consumption earlier = 100 So total expense earlier = 100*100 = 10000 New total expense = 11500 (15% higher) New consumption of gasoline = 11500/125 = 92 Now, the consumption has changed from 100 to 92 hence, 8% decrease Answer: Option B _________________ Prepare with PERFECTION to claim Q≥50 and V≥40 !!! GMATinsight .............(Bhoopendra Singh and Dr.Sushma Jha) e-mail: info@GMATinsight.com l Call : +91-9999687183 / 9891333772 One-on-One Skype classes l Classroom Coaching l On-demand Quant course l Admissions Consulting Most affordable l Comprehensive l 2000+ Qn ALL with Video explanations l LINK: Courses and Pricing Click for FREE Demo on VERBAL & QUANT Our SUCCESS STORIES: From 620 to 760 l Q-42 to Q-49 in 40 days l 590 to 710 + Wharton l FREE GMAT Resource: 22 FREE (FULL LENGTH) GMAT CATs LINKS l NEW OG QUANT 50 Qn+VIDEO Sol. VP Status: Learning Joined: 20 Dec 2015 Posts: 1089 Location: India Concentration: Operations, Marketing GMAT 1: 670 Q48 V36 GRE 1: Q157 V157 GPA: 3.4 WE: Engineering (Manufacturing) Re: If the price of gasoline increases by 25% and Ron intends to spend onl [#permalink] ### Show Tags 09 Sep 2017, 02:48 Let the consumption be C , price of petrol be X and quantity consumed Y Than we have C=X*Y After price increase we have 1.15C=1.25X*a*Y Where a is the percent of quantity decreased Solving the above two equations we have a=92% of 8 % decrease. Director Joined: 09 Mar 2018 Posts: 978 Location: India Re: If the price of gasoline increases by 25% and Ron intends to spend onl [#permalink] ### Show Tags 18 Feb 2019, 00:17 Bunuel wrote: If the price of gasoline increases by 25% and Ron intends to spend only 15% more on gasoline, by how much percent should he reduce the quantity of gasoline that he buys? A. 6.66% B. 8% C. 10% D. 12% E. 12.5% Initial price =$ 100
Increased price = \$ 125

Initial expenditure = 100
New expenditure = 115

If he wants to reduce the consumption = {(125 - 115)/125} * 100 = 8%

B
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Re: If the price of gasoline increases by 25% and Ron intends to spend onl  [#permalink]

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16 May 2020, 07:05
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Re: If the price of gasoline increases by 25% and Ron intends to spend onl   [#permalink] 16 May 2020, 07:05