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The price of an article is reduced by 25...

The price of an article is reduced by 25% but the daily sale of the article is increased by 30%. The net effect on the daily sale receipts is

A

`2 (1)/(2)` % decrease

B

`2 (1)/(2)` % increase

C

2% decrease

D

2% increase

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The correct Answer is:
To solve the problem step by step, we will follow the calculations as described in the video transcript. ### Step-by-Step Solution: 1. **Assume the Initial Price and Sales:** - Let the initial price of the article be \( P = 100 \) rupees. - Let the initial number of articles sold be \( Q = 100 \). - Therefore, the initial total sales (receipts) \( SI \) can be calculated as: \[ SI = P \times Q = 100 \times 100 = 10,000 \text{ rupees} \] 2. **Calculate the Reduced Price:** - The price is reduced by 25%. Therefore, the reduced price \( P' \) is: \[ P' = P - (0.25 \times P) = 100 - (0.25 \times 100) = 100 - 25 = 75 \text{ rupees} \] 3. **Calculate the Increased Quantity Sold:** - The daily sale of the article increases by 30%. Therefore, the new quantity sold \( Q' \) is: \[ Q' = Q + (0.30 \times Q) = 100 + (0.30 \times 100) = 100 + 30 = 130 \] 4. **Calculate the New Total Sales:** - Now, we calculate the new total sales \( SF \) with the reduced price and increased quantity: \[ SF = P' \times Q' = 75 \times 130 \] - Performing the multiplication: \[ SF = 75 \times 130 = 9750 \text{ rupees} \] 5. **Calculate the Change in Sales:** - Now, we find the change in sales receipts: \[ \text{Change} = SF - SI = 9750 - 10000 = -250 \text{ rupees} \] 6. **Calculate the Percentage Decrease:** - To find the percentage decrease in sales receipts, we use the formula: \[ \text{Percentage Decrease} = \left( \frac{SF - SI}{SI} \right) \times 100 = \left( \frac{-250}{10000} \right) \times 100 \] - Simplifying this gives: \[ \text{Percentage Decrease} = -2.5\% \] ### Final Answer: The net effect on the daily sale receipts is a decrease of **2.5%**.
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