Question

When the price of fans was reduced by $20\%$, the number of fans sold is increased by $40\%$.What was the effect on the sales in rupees?

Answer 1

Find the effect on the sales in rupees.

Percentage of reduced price$=20\%$

Percentage of number of fans sold increased $=40\%$.

If a number is increased by $a\%$ and the decreased by $b\%$ then the net effect is $a-b-\frac{ab}{100}$.

Now, net effect

$$\begin{gathered} =–20+40-\frac{20\times 40}{100} \\ =12\% \end{gathered}$$

Therefore, the sale increase by $12\%$.