When the price of a laptop was reduced by 15%, its sales increased by 10%. What was the net effect on the sale?
Show answer & explanation
Correct answer: A
Explanation
The correct answer is option 1 i.e 6.5% decrease.
Price reduced by 15%, so new price = 85% of original
Sales increased by 10%, so new quantity = 110% of original
Net effect on sales (revenue) = 85% × 110% = 0.85 × 1.10 = 0.935 = 93.5%
This means sales revenue decreased by 6.5%