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If the price of an article is reduced by 25% and its daily sale is increased by 30%, then the net percent effect on daily sale is
Question

If the price of an article is reduced by 25% and its daily sale is increased by 30%, then the net percent effect on daily sale is

A.

2.5% increase

B.

2% increase

C.

2% decrease

D.

2.5% decrease

Correct option is D

Given:
Price change (a) = -25%
Sale change (b) = +30%
Formula Used:
Net effect = a+b+a×b100 a + b + \frac{a × b}{100}​​
Solution:
Substitute the values into the successive percentage formula.
Net effect = 25+30+25×30100 -25 + 30 + \frac{-25 × 30}{100}​​
=5750100 = 5 - \frac{750}{100}​​
= 5 - 7.5 = -2.5%
A negative sign indicates a decrease.
Therefore, there is a 2.5% decrease in the daily sale.
Final Answer
So the correct answer is (d)

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