Question

When the price of a product was increased by 15%, the number of items sold was decreased by 20%. What was the net effect on the revenue?
4% decrease
8% decrease
8% increase
2% increase​

Answer 1

Answer:

8% decrease

Step-by-step explanation:

Let say there were 100 products with price of rupees 100 each

Total sold price = 100 * 100 = 10,000 rupees

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Price increased by 15%,

new price is 115 rupees

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items sold was decreased by 20%.

items sold = 80

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Total sold price = 80 * 115 = 9,200 rupees

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Now,

10,000 - 9,200 = 800 rupees

% decrease = (800/10000) * 100 = 8%