When the price of cloth is decreased by 25%, the quantity of cloth sold increased by 20%. What was the effect on gross receipt of the shop?
Answer & explanation
Correct answer: option 4
Original : New
Price: 4 : 3 [25% = \(\frac{1}{4}\)]
Qty : 5 : 6 [20% = \(\frac{1}{5}\)]
Receipt: 20 : 18
10 : 9 ⇒ 1 (decrease)
Decreased percentage = \(\frac{1}{10}\) × 100% = 10%