Question

The price of an article increases by 20% and then decreases by 10%. Then the net percentage change is:

• A. 8% increase
• B. 10% increase
• C. 8% decrease
• D. 10% decrease

Hint:

Net change = $x + y + \frac{xy}{100}$. Here $x=20, y=-10$.

Answer 1

The Correct Option is A

Step 1: Concept
Successive percentage changes.

Step 2: Analysis
Let the initial price be 100.
After 20% increase: $100 + 20 = 120$.

Step 3: Calculation
After 10% decrease on 120: $120 - (10% \text{ of } 120) = 120 - 12 = 108$.
Net change = $108 - 100 = 8$ (positive, so increase).

Step 4: Conclusion
The net change is an 8% increase. Final Answer: (A)