# The price of an item was reduced by 20%. If the number of items sold is increased by 40% what was the effect on the sales(in %)? a) 12% increase b) 12% decrease c) 40% decrease d) 60% increase

## Question ID - 55857 :- The price of an item was reduced by 20%. If the number of items sold is increased by 40% what was the effect on the sales(in %)? a) 12% increase b) 12% decrease c) 40% decrease d) 60% increase

3537

Let the cost price of 1 item be  and number of items sold be Then, cost price of items=  Now, C.P. of 1 item is reduced by 20%. ∴ New C.P. of one item=Rs. of =  Also, number of items is increased by 40%. ∴ Number of new items sole = of ∴ New price of items

=Number of items × C.P. of 1 item= Increase in sale= ∴ Increase % = = = Alternative Method (I) (Using corollary (1) of T-1):

∴ Required % of effect= Alternative Method (II):

Price of commodity decreased by 20%

Number of commodity increased by 40%

Therefore new sales in rupees=((100-20)%×(100+40)%) of the original

=(80%×140%) of the original

= =112% of the original⇒Sales increased by =(112-100)%=12%

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