When the price of an article was increased by 5% its sale reduced by 10%. What was net effect on the revenue?
Answer & explanation
Correct answer: option 2
Revenue = Price x Sale
When price increase by 5% and sale reduces by 10%
Change in revenue = $\frac{105}{100}$ x $\frac{90}{100}$ original revenue
= $\frac{945}{1000}$
= 5.5% decrease