When the price of an article was reduced by 25%, its sale was increased by 75%. Calculate the net effect on revenue.

31.25% decrease 31.25% increase 39.75% increase 39.75% decrease

31.25% increase

25% = \(\frac{1}{5}\) 75% = \(\frac{3}{4}\) Price =   4               3 Sale =   4               7     ———————————————          16              21 Daily revenue increased by 5 = \(\frac{5 × 100}{16}\) = 31.25%