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(A) If a product's price is decreased by 25 % and then increased by 20 %, then the net change in the price of the product, is : decrease by 10%

(B) If a product's price is increased by 15 % and then again increased by 20 %, then the net change in the price of the product, is : Increase by 38 %

Choose the correct option(s):

Solution

✅ Correct Option: 1

Checking Statement (A): Price decreased by 25%, then increased by 20%

Starting with ₹100 as the original price.

After 25% decrease:

25% of ₹100 = ₹25

New Price = ₹100 - ₹25 = ₹75

After 20% increase on ₹75:

20% of ₹75 = ₹15

Final Price = ₹75 + ₹15 = ₹90

Net change:

Started with ₹100, ended with ₹90

Loss = ₹10

Net change = 10100×100=10%\dfrac{10}{100} \times 100 = 10\% decrease

Statement (A) is correct.


Checking Statement (B): Price increased by 15%, then increased by 20%

Starting with ₹100 as the original price.

After 15% increase:

15% of ₹100 = ₹15

New Price = ₹100 + ₹15 = ₹115

After 20% increase on ₹115:

20% of ₹115 = ₹23

Final Price = ₹115 + ₹23 = ₹138

Net change:

Started with ₹100, ended with ₹138

Profit = ₹38

Net change = 38100×100=38%\dfrac{38}{100} \times 100 = 38\% increase

Statement (B) is correct.


Both statements (A) and (B) are correct.

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