abhijit_sen wrote:

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

Statement 1:

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

Statement 2:

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.