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

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

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New post 19 Jun 2016, 17:34
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Question Stats:

82% (01:15) correct 18% (01:28) wrong based on 165 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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Posts: 54496
Re: When a certain shoe store reduces the price of its best-selling style  [#permalink]

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New post 19 Jun 2016, 21:49
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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]

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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.
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Re: When a certain shoe store reduces the price of its best-selling style   [#permalink] 20 Jul 2017, 10:07
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