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) \(2\frac{1}{2}\)% increase

(c) 2% decrease

(d) 2% increase

Answer 1

(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 x \(\frac{13}{10}\)y = Rs \(\frac{39}{40}\)xy

\(\therefore\) % reduction = \(\frac{Xy-\frac{39}{40}Xy}{Xy}\)x 100%

= \(\frac{100}{40}\)% = 2.5%