When the price of an article was reduced by 20% its sale increased by 30% What was the net effect on the sale?

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1. When the price of an article was reduced by 20% its sale increased by 80%. What was the net effect on the sale?

1. 1. 44% increase
   2. 44% decrease
   3. 66% increase
   4. 75% increase

Using Rule 5,Required effect

=		80 - 20 -	80 × 20		%
100

= (60 – 16)% = 44%

Positive sign shows increase

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When the price of an article was reduced by 20% its sale increased by [#permalink]

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When the price of an article was reduced by 20% its sale increased by 80%. What was the net effect on the sale?(A) 44% increase(B) 44% decrease (C) 60% increase(D) 66% increase(E) 66% decrease_________________

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Re: When the price of an article was reduced by 20% its sale increased by [#permalink]

The question asks "what was the net effect on the sale?" and tells us "the sale increased by 80%". So the answer is 80%. There's a problem with the wording of the question.The question surely means to ask "what was the effect on the revenue". This is a pure ratio question, so you can just invent numbers if you like - the answer will be the same for any numbers you choose. So you could imagine at first 10 items were sold for $10 each, for $100 revenue. Then after the percent changes, 18 items were sold for $8 each, for $144 revenue, a 44% increase.Or you can use algebra: if n items are sold for $p each, revenue is $np. If we reduce the price by 20%, the new price is 0.8p. If we increase the number sold by 80%, the new number sold is 1.8n. So the new revenue is (0.8p)(1.8n) = 1.44np, which is 1.44 times the old revenue, so is 44% greater. _________________

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Re: When the price of an article was reduced by 20% its sale increased by [#permalink]

The answer is ASimply put =(1.8x0.8) - 1 = 1.44 - 1 = 0.44

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Re: When the price of an article was reduced by 20% its sale increased by [#permalink]

HI All,This question is poorly-worded, but the intent is to compare the 'before revenue' to the 'after revenue' in terms of percentage change...We're told that decreasing the price of an item by 20% led to an increase of 80% in total number of that item sold. This question can be solved by TESTing VALUES.IF...Original Price = $100/unitOriginal Number sold = 100 unitsTotal Revenue = ($100)(100) = $10,000New Price = $100 - (.20)($100) = $80/unitNew Number sold = 100(1.8) = 180 unitsTotal Revenue = ($80)(180) = $14,400Percent Change = (new - old)/(old) = (14,400 - 10,000)/10,000 = 4,400/10,000 = 44/100 = 44% increase in revenue

Final Answer:

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Re: When the price of an article was reduced by 20% its sale increased by [#permalink]

S.P reduced to 80 from 100Sell increase by 80% i.e. 1.8 TimesNew sales = 0.8 *1.8 = 1.44

Net effect on sales 44% increase.

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Re: When the price of an article was reduced by 20% its sale increased by [#permalink]

balamoon wrote:

When the price of an article was reduced by 20% its sale increased by 80%. What was the net effect on the sale?(A) 44% increase(B) 44% decrease (C) 60% increase(D) 66% increase(E) 66% decrease_________________

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Re: When the price of an article was reduced by 20% its sale increased by [#permalink]

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Re: When the price of an article was reduced by 20% its sale increased by [#permalink]