On increasing the price of tickets for a show by 20 % the audience decreases by 30%. What is the effect on revenue?

16% decrease

Assume:

• Original ticket price = ₹100
• Original audience = 100 people

So, original revenue:

$100 \times 100 = \text{₹10,000}$

After the changes:

• New ticket price = $100 + 20\% = \text{₹120}$
• New audience = $100 - 30\% = 70$

New revenue:

$120 \times 70 = \text{₹8,400}$

Percentage change in revenue:

$\frac{10000 - 8400}{10000} \times 100 = 16\%$

Since the revenue has decreased,

Correct Answer: 16% decrease