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    Question

    The price of a commodity has risen by 40%, leading to a

    25% decrease in the quantity sold. What is the overall impact on total revenue? The following numbers form a series. Find the odd one out.
    A 5% increase Correct Answer Incorrect Answer
    B 15% increase Correct Answer Incorrect Answer
    C 5% decrease Correct Answer Incorrect Answer
    D 15% decrease Correct Answer Incorrect Answer
    E None of these Correct Answer Incorrect Answer

    Solution

    Let the initial price of the commodity be Rs. ‘10x’ And let number of units sold initially be ‘10y’. So, original revenue = 10x × 10y = Rs. ‘100xy’ New price of the commodity = 10x × 1.4 = Rs. ‘14x’ So, new number of units sold = 10y × 0.75 = Rs. ‘7.5y’ So, new revenue = 14x × 7.5y = Rs. ‘105xy’ So, net change = {(105xy – 100xy)/100xy} × 100 = 5% increase 

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