When the price of cloth was increased by 12.5%, the quantity of cloth sold decreased by 16\(\frac{2}{3}\) %. What was the effect on gross receipt of the shop?

6\(\frac{1}{4}\)% decrease

12.5 % = \(\frac{1}{8}\)

16\(\frac{2}{3}\) % = \(\frac{1}{6}\)

                          Original      :        New

Price:                      8           :          9 

Qty:                        6           :          5     

Gross Receipt:         48         :         45

                              16         :         15     ⇒ decreased by= 1

Decreased Percentage = \(\frac{1}{16}\) × 100% = 6\(\frac{1}{4}\)%