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When the price of cloth was reduced by 25%, the quantity of cloth sold increased by 20%. What was the effect on gross receipt of the shop?
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- 5% increase
- 5% decrease
- 10% increase
- 10% decrease
Correct Option: D
Using the given formula ,
Given Here , a = 20% , b = 25%
| ∴ Required percent effect = |  | a - b - | a × b |  | % | |
| 100 |
| Required percent effect = | | 20 - 25 - | 20 × 25 | | % | |
| 100 |
Required percent effect = (–5 – 5)% = – 10% (10% decrease)
Note :- Negative sign shows decrease
