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The price of Maruti car rises by 30 percent while the sales of the car come down by 20%. What is the percentage change in the total revenue?

A. - 4%

B. - 2%

C. + 4%

D. + 2%

E. None of these

Answer: Option C

Solution(By Examveda Team)

Let initial price of Maruti Car be Rs. 100
As price increases 30%, price of car will become, (100 + 30% of 100) = Rs. 130
Due to increase in price, sales is down by 20%. It means, it is going make 20% less revenue as expected after increment of price
So, New revenue = (130 - 20% of 130) = Rs. 104
The initial revenue was Rs. 100 which becomes Rs. 104 at the end. It means there is 4% increment in the total revenue

Mind Calculation Method:
100 == 30%↑(price effect) ==> 130 == 20%↓(sales effects) ==> 104
Hence, 4% rises

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Comments ( 1 )

  1. Nvjddurrg Jgyureey
    Nvjddurrg Jgyureey :
    4 years ago

    30-20-600/100
    30-20-6
    4% increase

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