The price of a laptop in a shop is decreased by 35%, as a result of which the sales increased by 20%. What is the effect on the total revenue of the shop from the sale of laptops?

Correct option is B

Given:

Price of laptop decreased by 35%

Sales of laptop increased by 20%

Solution:

Let the price of laptop be 100

And sales of laptop be 100

Total revenue before price decrease = 100 $$\times$$​ 100 = 10000

Now new price of laptop = 100 - 35% of 100 = 65

Increased sales = 100 + 20% of 100 = 120

New revenue = 65 $$\times$$​ 120 = 7800

Total revenue decreased by = 10000 - 7800 = 2200

Percent of revenue decreased =$$\frac{2200}{10000} \times 100 = 22\%$$​​