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An automobile owner reduced his monthly petrol consumption when the prices went up. The price-consumption relationship is as follows: Price (in Rs. per litre) 40 50 60 75 Monthly consumption (in litres) 60 48 40 32 If the price goes up to Rs. 80 per litre, his expected consumption (in litres) will be

  1. A.30
  2. B.28
  3. C.26
  4. D.24
▶ Answer & Explanation

Correct answer: A. 30

The question presents a scenario where increased petrol prices lead to decreased consumption. Analyzing the provided data, we can observe a consistent inverse relationship. If the expenditure remains constant (Price x Consumption = Total Expenditure), a 25% increase in price from Rs. 60 to Rs. 75 resulted in a 20% decrease in consumption from 40 to 32 litres. This pattern suggests an elasticity where consumption decreases proportionally less than the price increase, implying a constant expenditure. Following this pattern, an increase in price from Rs. 75 to Rs. 80 (a 6.67% increase) would lead to a consumption decrease that maintains a similar expenditure level, pointing towards 30 litres as the most probable consumption.

Source: UPSC csat 2015

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