Maths · Probability: Probability of an event, addition and multiplication theorems of probability
When the price of TV set was increased by , then number of TV sets sold decrease
When the price of TV set was increased by \( 30 \% \), then number of TV sets sold decreased by \( 20 \% . \) What was the effect on the sales?
- A. \( 5 \% \) decrease
- B. \( 7 \% \) increase
- C. \( 6 \% \) decrease
- D. \( 4 \% \) increase
Step-by-step solution
Let initial price be P and initial quantity sold be Q. Original sales = P × Q. After a 30% increase, new price = 1.3P. After a 20% decrease, new quantity = 0.8Q. New sales = 1.3P × 0.8Q = 1.04PQ. Hence, sales increase by 4%.
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