Question

When the price of a product was decreased by $10\%$, the number sold increased by $30\%$. What was the increase on the total revenue?

• A. $23\%$
• B. $16\frac{2}{3}\%$
• C. $15\%$
• D. $17\%$

Answer 1

The correct option is D $17\%$

Let,

$x=$price of product$,y=$number of products sold

new price$=0.9x$, new number of products sold$=1.3y$

Total increase in revenue= Final revenue- initial revenue$=0.9x\ast 1.3y-xy=1.17xy$

Increase in percentage$=(1.17xy-xy)/xy\times 100$

$=0.17\times 100=17$%