Suppose original Price was 100.
So Price after increase by X% = 100 + X
Price after decrease by Y% = 100 + X - Y - XY/100
New Price - Old Price = 100 + X - Y -XY/100 - 100 = X - Y -XY/100
So we need to answer whether or not this entity is +ve or negative X - Y -XY/100
Say X=0.2,Y=0.1 So Entity = 0.1 - .0002 = +ve entity
Say X=100, Y=1, so Entity = 99 - 1 = +ve entity
So question can be Answered with A
It is nothing but restatement of statement 1 with 1 fix value.
So this also answers the questions.
Question can be answered with both the statements alone. (D)
OA is E. if x is much bigger than y, the new price would be higher than the original, otherwise it wouldn't. this reasoning is true both for 1 and 2. try out.