On decreasing the price of a colour TV by 30 its sale is increased by 20 The effect on the revenue i...........

Quantitative Aptitude ( CCS) Percentage

On decreasing the price of a colour TV by 30%, its sale is increased by 20%. The effect on the revenue is

16% decrease

16% increase

20% increase

None of these

Let price be 100, then after discount it will be 70.

Let total units sold be x(without discount.) then total revenue generated = 100x.

when discount given then total units sold is 20% more = 70*120x/100
(100x - 70*120x/100) / 100x ) * 100 = 16%

Hence, option 1 is the correct answer.

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