The price of a movie ticket was increased by 18%. The increase in ticket price reduced the number of audiences by 25%. What is the effect on revenue?

Correct option is C

Given: Ticket price increased by 18%, audience reduced by 25%.
Formula Used:
Total Revenue = Ticket Price × Number of Audience
Solution:
Let's assume the initial ticket price is 100 and assume the number of audience initially is 100.
Initial Revenue = Initial Ticket Price × Initial Number of Audience = 100 × 100 = 10,000
New Ticket Price = 100 + (18% of 100) = 100 + 18 = 118
New Number of Audience = 100 - (25% of 100) = 100 - 25 = 75
New Revenue = New Ticket Price × New Number of Audience = 118 × 75 = 8,850
Change in Revenue = Initial Revenue - New Revenue = 10,000 - 8,850 = 1,150
Percentage Decrease = (1,150 / 10,000) × 100 = 11.5%
Alternate Method:
Overall percentage decrease in revenue = 18 - 25 - [(18 × 25) / 100] = -7 - 4.5 = -11.5%