NEW HERE? LEARN MORE
closeclose
Last visit was: 25 Apr 2024, 09:19 It is currently 25 Apr 2024, 09:19
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

SORT BY:
Date
Kudos
Tags:
Find Similar Topics 
Show Tags
Hide Tags
avatar
tanad
Intern
Intern
Joined: 07 Oct 2015
Posts: 12
Own Kudos [?]: 166 [10]
Given Kudos: 6
Send PM
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
00:00
A
B
C
D
E

Difficulty:

15% (low)

Question Stats:

83% (01:16) correct 17% (01:30) wrong based on 260 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
B
Most Helpful Reply
User avatar
L
Bunuel
Math Expert
Joined: 02 Sep 2009
Posts: 92914
Own Kudos [?]: 618961 [8]
Given Kudos: 81595
Send PM
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
6
Kudos
2
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.
General Discussion
User avatar
G
ashikaverma13
Manager
Manager
Joined: 19 Aug 2016
Posts: 129
Own Kudos [?]: 293 [0]
Given Kudos: 59
Location: India
Schools: ISB '20 (WD) Schulich Sept 18 Intake (A) Rotman '20 (S)
GMAT 1: 640 Q47 V31
GPA: 3.82
Send PM
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: 6072
Own Kudos [?]: 4689 [1]
Given Kudos: 463
Location: India
GPA: 3.5
WE:Business Development (Commercial Banking)
Send PM
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)
avatar
B
littlestone
Intern
Intern
Joined: 02 Aug 2020
Posts: 7
Own Kudos [?]: 6 [4]
Given Kudos: 154
Send PM
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: 32676
Own Kudos [?]: 821 [0]
Given Kudos: 0
Send PM
Re: When a certain shoe store reduces the price of its best-selling style [#permalink] New post   06 Nov 2023, 07:14
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 Club Bot
gmatclubot
Re: When a certain shoe store reduces the price of its best-selling style [#permalink]
06 Nov 2023, 07:14
Moderators:
Bunuel
Math Expert
92914 posts
yashikaaggarwal
Senior Moderator - Masters Forum
3137 posts

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