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
Options:
A . 2$1/2$% decrease
B . 2% decrease
C . 2% increase
D . 2$1/2$% increase
Answer: Option A Answer: (a) Let the price of the article be Rs.100 and the daily sale be 100 units. Revenue day = 100 × 100 = Rs.10000 New receipts = 75 × 130 = Rs.9750 Decrease = Rs.(10000 – 9750) = Rs.250 % decrease = $250/10000 × 100 = 2{1}/2%$ Using Rule 5, If a number is decreased by a% and then it is increased by b%, then net increase or decrease per cent is $(-a + b - {ab}/100)$% (Negative sign for decrease; Positive sign for increase)
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