Question

When the price of cloth was reduced by 25%, the quantity of cloth sold increased by 20%. What was the effect on the gross receipt of the shop?

Options

• 5% increase

• 5% decrease

• 10% increase

• 10% decrease

Answer 1

10% decrease

Explanation:

Price = 4 : 3

Selling = `5/20 : 6/18`

∴ `2/20 xx 100` = 10%