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When a certain shoe store reduces the price of its best-selling style
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tanad
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When a certain shoe store reduces the price of its best-selling style [#permalink] New post  19 Jun 2016, 16:34
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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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Bunuel
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Re: When a certain shoe store reduces the price of its best-selling style [#permalink] New post  19 Jun 2016, 20:49
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tanad 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%.

Answer: B.
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Re: When a certain shoe store reduces the price of its best-selling style [#permalink] New post  20 Jul 2017, 09:07
Bunuel wrote:
tanad 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%.

Answer: B.



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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Abhishek009
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When a certain shoe store reduces the price of its best-selling style [#permalink] New post  02 Nov 2019, 10:15
tanad 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%


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

\(= 0 - 1\)

\(= -1\) , Answer must be (B)
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littlestone
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Re: When a certain shoe store reduces the price of its best-selling style [#permalink] New post  06 Oct 2020, 11:31
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Price x Quantity = Revenue

with the price decreasing 10%, we should use 0.9P
with the quantity sold increasing 10%, we should use 1.1Q

Therefore, the impact on revenue = 0.9P * 1.1Q

Simplify 0.99PQ, which approximately equals a 1% decrease.
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Re: When a certain shoe store reduces the price of its best-selling style [#permalink]
06 Oct 2020, 11:31
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