Question

The price of an article is reduced by $25\%$ but the daily sale of the article is increased by $30\%$. The net effect on the daily sale receipts is

• A. $2\frac{1}{2}$% decrease
• B. $2\frac{1}{2}$% incerase
• C. $2\%$ decrease
• D. $2\%$ increase

Answer 1

Answer: (A)

$2\frac{1}{2}$% decrease

Let the price of the article be Rs. $x$ and daily sale be $y$ units.

Then daily sale receipts $=$ Rs. $xy$
Reduced price of the article $=$ Rs. $\frac{3}{4}x$ Increased daily sale $=$ Rs. $\frac{13}{10}y$
$\therefore$ Daily sale receipts $=$ Rs. $\frac{3}{4}x\times \frac{13}{10}y=$ Rs. $\frac{39}{40}xy$
$\therefore$ $\%$ reduction $=\frac{100}{40}\%=2.5\%$