Q162
ArithmeticPercentage, Profit & Loss
If a man allows 20% discount on all his articles, the number of the articles sold is increased by 20%. What will be the effect on total sale?
- a.40% increase
- b.4% increase
- c.4% decrease
- d.No effect
Answer: (C) 4% decrease
Sales value = price × number = 0·8 × 1·2 = 0·96 of the original. So total sales fall by 4%. 'No effect' wrongly assumes the −20% and +20% cancel out.