Question

The price of a Maruti car rises by 30% while the sales of the car comes down by 20% What is the percentage change in the total revenue?

• A. -4%
• B. -2%
• C. +4%
• D. +2%

Answer 1

Answer: (C)

+4%

Let the initial price of a Maruti car be Rs. 100

As the price increases by 30%, the price of the Maruti car will become Rs.$(100+\frac{30}{100}\times 100)=Rs130$

Due to increase in price sale is down by 20%. This means that it is going to make 20% less revenue after the increase in price.

So, new Revenue generated $=Rs.(130-\frac{20}{100}\times 130)=Rs.104$

Thus, there is a $4$% increment in the revenue.