Question

Two shopkeepers sell the same article at the same price for the same quantity. One gives $25\%$ discount; the other offers $25\%$ more quantity at the same price. From a customer's view, which is better?

• A. 1st shopkeeper's deal
• B. 2nd shopkeeper's deal
• C. both are equal
• D. cannot be determined

Hint:

"More quantity at same price" $\Rightarrow$ divide price by the quantity factor to get the effective price per unit.

Answer 1

The Correct Option is A

Deal 1: price becomes $75\%$ of original (effective price factor $0.75$).
Deal 2: quantity becomes $125\%$; effective price per unit $=\frac{1}{1.25}=0.80$ of original.
Since $0.75 < 0.80$, Deal 1 is better.