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Question
A merchant marks his goods at 25% above the cost price. Due to a slump in the market, his cost reduces by 5%. He thus offers a discount of 8% due to which the sales go up by 25%. Compute the change in the merchant's profit = ?
Options:
A .  5% higher
B .  $$7\frac{1}{2}$$% higher
C .  8% lower
D .  Unchanged
Answer: Option D

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