NEW HERE? LEARN MORE
closeclose
It is currently 30 Sep 2023, 06:52
Register
GMAT Club Tests
Decision Tracker
My Rewards
New posts
New comers' posts

Close

GMAT Club Daily Prep

Thank you for using the timer - this advanced tool can estimate your performance and suggest more practice questions. We have subscribed you to Daily Prep Questions via email.

Customized
for You

we will pick new questions that match your level based on your Timer History

Track
Your Progress

every week, we’ll send you an estimated GMAT score based on your performance

Practice
Pays

we will pick new questions that match your level based on your Timer History

Not interested in getting valuable practice questions and articles delivered to your email? No problem, unsubscribe here.

Go to My Error Log Learn more
Close

Request Expert Reply

Confirm Cancel

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

6 posts Go to First Unread Post
Print view
NEW TOPIC
POST REPLY
Downloads
My Bookmarks
Reviews
SORT BY:
Date
Kudos
avatar
tanad
Intern
Intern
Joined: 07 Oct 2015
Posts: 12
When a certain shoe store reduces the price of its best-selling style [#permalink] New post  19 Jun 2016, 17:34
2
Kudos
8
Bookmarks
Quiz Dashboard Attempt only this question Same topic and source Same topic and difficulty Same source and difficulty Random Chronological Reverse chronological Learn more
00:00
A
B
C
D
E

Difficulty:

15% (low)

Question Stats:

81% (01:14) correct 19% (01:29) wrong based on 226 sessions

Hide Show timer Statistics

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%
ShowHide Answer
Official Answer
Official Answer and Stats are available only to registered users. Register/Login.
Quiz Dashboard Attempt only this question Same topic and source Same topic and difficulty Same source and difficulty Random Chronological Reverse chronological Learn more
Most Helpful Reply
User avatar
L
Bunuel
Math Expert
Joined: 02 Sep 2009
Posts: 89505
CAT Tests Forum Quiz Mode
Re: When a certain shoe store reduces the price of its best-selling style [#permalink] New post  19 Jun 2016, 21:49
5
Kudos
1
Bookmarks
Expert Reply
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.
_________________
New to the GMAT CLUB Forum?

My Signature Questions' Collection:


What are GMAT Club Tests?
Extra-hard Quant Tests with Brilliant Analytics
Signature Read More
General Discussion
User avatar
G
ashikaverma13
Manager
Manager
Joined: 19 Aug 2016
Posts: 130
Location: India
Schools: ISB '20 (WD) Schulich Sept 18 Intake (A) Rotman '20 (S)
GMAT 1: 640 Q47 V31
GPA: 3.82
Reviews Badge
Re: When a certain shoe store reduces the price of its best-selling style [#permalink] New post  20 Jul 2017, 10:07
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.
User avatar
L
Abhishek009
Board of Directors
Joined: 11 Jun 2011
Status:QA & VA Forum Moderator
Posts: 5907
Location: India
GPA: 3.5
WE:Business Development (Commercial Banking)
GMAT ToolKit User
When a certain shoe store reduces the price of its best-selling style [#permalink] New post  02 Nov 2019, 11:15
1
Kudos
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)
_________________
Thanks and Regards

Abhishek....

PLEASE FOLLOW THE RULES FOR POSTING IN QA AND VA FORUM AND USE SEARCH FUNCTION BEFORE POSTING NEW QUESTIONS

How to use Search Function in GMAT Club | Rules for Posting in QA forum | Writing Mathematical Formulas |Rules for Posting in VA forum | Request Expert's Reply ( VA Forum Only )
Signature Read More
avatar
B
littlestone
Intern
Intern
Joined: 02 Aug 2020
Posts: 7
Re: When a certain shoe store reduces the price of its best-selling style [#permalink] New post  06 Oct 2020, 12:31
4
Kudos
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.
User avatar
bumpbot
Non-Human User
Joined: 09 Sep 2013
Posts: 29536
Re: When a certain shoe store reduces the price of its best-selling style [#permalink] New post  18 Oct 2022, 03:44
Hello from the GMAT Club BumpBot!

Thanks to another GMAT Club member, I have just discovered this valuable topic, yet it had no discussion for over a year. I am now bumping it up - doing my job. I think you may find it valuable (esp those replies with Kudos).

Want to see all other topics I dig out? Follow me (click follow button on profile). You will receive a summary of all topics I bump in your profile area as well as via email.
_________________
GMAT Books | GMAT Club Tests | Best Prices on GMAT Courses | GMAT Mobile App | Math Resources | Verbal Resources
Signature Read More
GMAT Club Bot
gmatclubot
Re: When a certain shoe store reduces the price of its best-selling style [#permalink]
18 Oct 2022, 03:44
NEW TOPIC
POST REPLY
Downloads
My Bookmarks
Reviews
Moderators:
Bunuel
Math Expert
89505 posts
yashikaaggarwal
Senior Moderator - Masters Forum
3136 posts

cron

Powered by phpBB © phpBB Group | Emoji artwork provided by EmojiOne
Main navigation
GMAT Resources
Partners
MBA Resources
www.gmac.com|www.mba.com | | GMAT Club Rules | Terms and Conditions