Solution
Assume initially: Number of people = 100 Entry fee per person = 100
Initial total earnings = 100 × 100 = 10,000
After changes:
Increase in people = 30% New number of people = 130
Reduction in entry fee = 25% New entry fee = 75
New total earnings = 130 × 75 = 9,750
Change in earnings = 9,750 − 10,000 = −250
Percentage change = (−250 / 10,000) × 100 =
2.5% decrease
Correct Answer:
(b) 2.5% decrease
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