SOLUTION: during a period of acute shortage of raw materials, the prices of some manufactured goods were raised by 25% . After the shortages were over. prices were lowered by 15%. If the ori

Question 191303: during a period of acute shortage of raw materials, the prices of some manufactured goods were raised by 25% . After the shortages were over. prices were lowered by 15%. If the original price of an article was Rs 56 , finds its price after the shortages were over . Would it have been cheaper if its price had been raised byh 8% at the beginning of the shortages and left uncharged at the end ?
Answer by jojo14344(1513) (Show Source): You can put this solution on YOUR website!

Let us bisect the two situations,

During shortage:
Let = original price = 56 Rs
, raised by 25%

70 Rs becomes

After Shortage
Let = new price, lowered by 15%

59.50 Rs, (Answer)

*If Original Price was increase only by 8% at the beginning of shortage:

60.48 Rs, a little bit higher, almost 1 Rs more.

*Conclusion, having increased by 25% and lowering thereafter by 15% has a cheaper price.

Thank you,
Jojo

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