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?
Answer & explanation
Correct answer: option 4
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\(\frac{1}{4}\)%