NIMCET 2026 — Reasoning PYQ

To solve this problem, we use the relationship between price, consumption, and total expenditure. Since the total expenditure must remain constant, we can use the following logic:

Step 1: Understand the Relationship

Expenditure is defined as:

$$\text{Expenditure}=\text{Price}\times \text{Consumption}$$

If the expenditure remains constant, any increase in Price must be offset by a proportional decrease in Consumption. Let the initial Price be $P$ and initial Consumption be $C$.

Step 2: Apply the Formula

When the price of a commodity increases by $R\%$, the percentage reduction in consumption to keep expenditure constant is given by the formula:

$$\text{Reduction}\%=\left(\frac{R}{100+R}\right)\times 100$$

Here, $R=16$.

Step 3: Perform the Calculation

Substitute the value of $R$ into the formula:

$$\text{Reduction}\%=\left(\frac{16}{100+16}\right)\times 100$$

$$\text{Reduction}\%=\left(\frac{16}{116}\right)\times 100$$

Simplifying the fraction:

$$\text{Reduction}\%=\left(\frac{4}{29}\right)\times 100$$

$$\text{Reduction}\%\approx 0.137931\times 100$$

$$\text{Reduction}\%\approx 13.79\%$$

Correct Answer:

The household must reduce its LPG consumption by 13.79% to maintain the same expenditure level. Therefore, Option 1 is the correct answer.