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# When a certain shoe store reduces the price of its best-selling style

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Intern
Joined: 07 Oct 2015
Posts: 12
When a certain shoe store reduces the price of its best-selling style  [#permalink]

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19 Jun 2016, 16:34
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Difficulty:

15% (low)

Question Stats:

81% (01:15) correct 19% (01:30) wrong based on 125 sessions

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When a certain shoe store reduces the price of its best-selling style of shoe by 10 percent, the weekly sales of this style increase by 10 percent. Which of the following best describes the resulting change in the store's weekly revenue from sales of this style of shoe?

A: Revenue decreases by 10%
B: Revenue decreases by 1%
C: There is no change in revenue
D: Revenue increases by 1%
E: Revenue increases by 10%
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Joined: 02 Sep 2009
Posts: 65062
Re: When a certain shoe store reduces the price of its best-selling style  [#permalink]

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19 Jun 2016, 20:49
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When a certain shoe store reduces the price of its best-selling style of shoe by 10 percent, the weekly sales of this style increase by 10 percent. Which of the following best describes the resulting change in the store's weekly revenue from sales of this style of shoe?

A: Revenue decreases by 10%
B: Revenue decreases by 1%
C: There is no change in revenue
D: Revenue increases by 1%
E: Revenue increases by 10%

Old price = 10, old sales = 10 --> old revenue = 100;
New price = 9, new sales = 11 --> new revenue = 99.

Revenue decreased by 1%.

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Re: When a certain shoe store reduces the price of its best-selling style  [#permalink]

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20 Jul 2017, 09:07
Bunuel wrote:
When a certain shoe store reduces the price of its best-selling style of shoe by 10 percent, the weekly sales of this style increase by 10 percent. Which of the following best describes the resulting change in the store's weekly revenue from sales of this style of shoe?

A: Revenue decreases by 10%
B: Revenue decreases by 1%
C: There is no change in revenue
D: Revenue increases by 1%
E: Revenue increases by 10%

Old price = 10, old sales = 10 --> old revenue = 100;
New price = 9, new sales = 11 --> new revenue = 99.

Revenue decreased by 1%.

Will the general formula used for calculating successive increase or decrease of percentage of an item be applicable here? the formula A+B+ AB/100 (Where A and B are the successive increase of decrease)

I am confused because through that method as well, the answer is B.
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When a certain shoe store reduces the price of its best-selling style  [#permalink]

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02 Nov 2019, 10:15
When a certain shoe store reduces the price of its best-selling style of shoe by 10 percent, the weekly sales of this style increase by 10 percent. Which of the following best describes the resulting change in the store's weekly revenue from sales of this style of shoe?

A: Revenue decreases by 10%
B: Revenue decreases by 1%
C: There is no change in revenue
D: Revenue increases by 1%
E: Revenue increases by 10%

$$+10 - 10 + \frac{(+10)(-10)}{100}$$

$$= 0 - 1$$

$$= -1$$ , Answer must be (B)
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When a certain shoe store reduces the price of its best-selling style   [#permalink] 02 Nov 2019, 10:15