Question

The price of a Maruti car rises by $30\%$, while the sales of the car goes down by $20\%$. What is the percentage change in the total revenue?

Answer 1

Let initial price of Maruti Car be Rs. $100$.

As price increases $30\%$, price of car will become, $100+30=Rs.130$.

Due to increase in price, sales goes down by $20\%$

It means, it is going to make $20\%$ less revenue, as expected after increment of price.

So, New revenue $=130-130\times \frac{20}{100}=130-26=104$ Rs .

The initial revenue was Rs. $100$ which becomes Rs. $104$ at the end.

It means there is $4\%$ increment in the total revenue.