In a sale, the prices in a shop were all decreased by 20%. After the sale, they were all increased by 25%. What was the overall effect on the shop prices? Explain how you know.

llm

Answered on Wed Mar 23 2022

Let the price before sale be 100x

Then, price decreased in sale = 100x/100 × 20

= 20x

So, the new price = 100x - 20x

= 80x

Now, after sale thus price is increased by 25%.

25% of 80x = 80x/100 × 25

= 20x

Thus, price after sale = 80x + 20x

= 100x

Thus, there was no effect on prices as prices before the sale and after sale were same.