If the price of a book is first decreased by 25% and then increased by

1.	If the price of a book is first decreased by 25% and then increased by 20%, the net change in the price of the book is (a) 10% decrease (b) 5% decrease (c) No change (d) 5% increase
Answer» (a) 10% decrease Let the original price of the book be Rs 100. Decreased price of the book = Rs 75 Increased price of the book after 20% increase = \(\frac{120}{100}\) x Rs 75 = Rs 90 \(\therefore\) Net change in price = Rs 10 decrease \(\therefore\) % change = \(\frac{10}{100}\) x 100 = 10% decrease.

If the price of a book is first decreased by 25% and then increased by 20%, the net change in the price of the book is (a) 10% decrease (b) 5% decrease (c) No change (d) 5% increase

Answer»

(a) 10% decrease

Let the original price of the book be Rs 100.

Decreased price of the book = Rs 75

Increased price of the book after 20% increase

= \(\frac{120}{100}\) x Rs 75 = Rs 90

\(\therefore\) Net change in price = Rs 10 decrease

\(\therefore\) % change = \(\frac{10}{100}\) x 100 = 10% decrease.