csateasy
If the price of an article is decreased by 20% and then the new price is increased by 25%, then what is the net change in the price ?
- A.0%
- B.5% increase
- C.5% decrease
- D.Cannot be determined due to insufficient data.
▶ Answer & Explanation
Correct answer: A. 0%
Let the original price of the article be 100 units. A decrease of 20% would bring the price to 80 units. An increase of 25% on this new price (80 units) means an increase of 25/100 * 80 = 20 units. The final price would be 80 + 20 = 100 units. Thus, there is no net change in the price from the original 100 units.
Source: UPSC csat 2021