Explanation:

Let's break down the problem:

- The cost price (CP) is the initial price at which the dealer bought the item.

- The marked price (MP) is 50% above the CP.

- So, MP = 1.5 × CP.

- The dealer gives two successive discounts of 30% and 25%.

- Effective discount = 1 - (0.7 × 0.75) = 0.475 or 47.5%.

- Therefore, the selling price (SP) = MP × (1 - 0.475).

- As a result of these discounts, the dealer incurs a loss of Rs 850.

- Loss = CP - SP = Rs 850.

We need to find the SP.

- SP = MP × 0.525 = 1.5 × CP × 0.525 = 0.7875 × CP.

- CP - 0.7875 × CP = 850.

- 0.2125 × CP = 850.

- CP = 850 / 0.2125 = Rs 4,000.

- SP = 0.7875 × 4,000 = Rs 3,150.

So, the selling price of the item is Rs 3,150.

- Option 1: Rs 3,150

- Option 2: Rs 3,250

- Option 3: Rs 3,050

- Option 4: Rs 3,200

. The correct selling price is Rs 3,150. ??