The price of a TV set is decreased by 20% as a result of which the sale increased by 30% What will be the effect on the total revenue of the shop?

No effect

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5% decrease

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10% increase

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None of these

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Solution

The correct option is D None of these
Effect on revenue= $i n c r e a s e p e r c e n t a g e v a l u e - D e c r e a s e p e r c e n t a g e v a l u e - \frac{i n c r e a s e p e r c e n t a g e v a l u e \times D e c r e a s e p e r c e n t a g e v a l u e}{100}$
$= 30 - 20 - \frac{30 \times 20}{100}$
$= 30 - 26 = 4$ %
Hence Revenue will increase 4%

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The price of a TV set is decreased by 20% as a result of which the sale increased by 30% What will be the effect on the total revenue of the shop?

The correct option is D None of theseEffect on revenue=increasepercentagevalue−Decreasepercentagevalue−increasepercentagevalue×Decreasepercentagevalue100=30−20−30×20100=30−26=4%Hence Revenue will increase 4%