Discussion

Question:

The owner of an art shop conducts his business in the following manner: Every once in a while he raises his prices by X%, then a while later he reduces all the new prices by X%. After one such up-down cycle, the price of a painting decreased by Rs. 441. After a second up-down cycle the painting was sold for Rs. 1,944.81. What was the original price of the painting?

Explanation:

As the price decreases after the first cycle, it has to decrease after the second cycle too. Also the decrease in the second cycle will be less than 441 as the original price for the second cycle is less than the original price for the first cycle.

∴ Price after First Cycle – 1944.81 < 441

Now we consider options.

So, options 2 and 4 are eliminated.

As the percentage change in the price in the first and second cycles is equal,

$\frac{O r i g i n a l p r i c e}{D e c r e a s e i n p r i c e a f t e r t h e f i r s t c y c l e}$ should be equal to

$\frac{P r i c e a f t e r f i r s t c y c l e}{D e c r e a s e i n p r i c e a f t e r t h e s e c o n d c y c l e}$

Only option 1 satisfies this.

Hence, option (a).

» Your doubt will be displayed only after approval.

Discussion

Doubts

Feedback