Multiple choice

The price of petrol increases by 20% and the sale decreases by 10%. What is the net revenue change in percent?

  1. 8% decrease

  2. 8% increase

  3. 10% decrease

  4. 10% increase

  5. 18% increase
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

Revenue = Price * Sales. Let initial price be 100 and sales be 100. New revenue = (100 * 1.20) * (100 * 0.90) = 120 * 90 = 10800. Compared to the original 10000, this is an 8% increase.

AI explanation

Let the initial price of petrol be 100 and the initial sale be 100, making the original revenue 10000. After a 20% price increase and a 10% sale decrease, the new price is 120 and the new sale is 90, resulting in a new revenue of 120 multiplied by 90, which is 10800. The difference between the new revenue and the old revenue is 10800 - 10000 = 800. The percentage change in net revenue is (800 / 10000) multiplied by 100, resulting in an 8% increase.

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