If the price of an item is increased by 10% and then decreased by 10% , the net effect on the price of the item is -
A
an increase of 9%
B
a decrease of 1%
C
an increase of 7%
D
No change
Correct Answer: a decrease of 1%
Lets say, price is 100 Tk 10% increase, sp = 110 tk 10% decrease, sp = 100 - 10% of 110 = 110 - 11 = 99 ∴ Net decrease 1%