Question

On decreasing the price of T.V sets by 30%, its sale is increased 20%. What is the effect on the revenue received by the shopkeeper?

A. 10% increase
B. 10% decrease
C. 16% increase
D.  16% decrease

please show solution.

Answer 1

Lets take the orignal price as 100. Then on decreasing the price by 30% we get= 70. Now the sale is increased by 20%=84 (20% of 70 or 20/100×70= 14 now 70+14=84) So we can say that Cp=100 and Sp=84 Thats loss as cp is bigger. Loss=16 Loss%=16/100×100 =16% So the ans is D. 16% decrease

Answer 2

Answer:

Answer is D.  16% decrease

Step-by-step explanation:

given that,

the original price of T.V has decreased by 30%

to reduce complexity, let us take the original price as Rs.100, hence the price decreased to Rs. 70 (100-30)

the sales has increased by 20% which implies that 20% of decreased price of T.V has lead to increase in sales

∴ increase in Sale = (20% of 70) + the present price of TV

                            = (0.20*70)+ 70

                            = 14+70

                            = Rs.84

hence the new selling price(SP) is Rs.84

the cost price(CP) was initially Rs.100

since CP> SP, it is loss

loss= CP-SP

      = 100-84

∴ Loss=Rs.16

To calculate the loss percentage we use =( loss/CP)×100

                           = (16/100)×100

∴Loss%= 16% decrease