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A shopkeeper marks up the price of his product by 20%. If he increases the discount from 5% to 10%, the profit would decrease by Rs 2
  • a)
    How much profit/ loss would he earn if he gives a discount of 20% on the marked price?1. Rs 14 loss
  • b)
    Rs 14 profit
  • c)
    Rs 20 loss
  • d)
    Rs 20 profit
Correct answer is option 'A'. Can you explain this answer?
Verified Answer
A shopkeeper marks up the price of his product by 20%. If he increases...
Let CP be 100 then MP 120
5% discount =114.  
10% discount =108.
If we let CP as 100 we get difference of Rs 6 but the actual difference 21, which is 3.5 times of 6.
It implies the CP of product = 3.5 * 100= 350, Then MP=20% of 350=70 =350 + 70 = 420. 
Now 20% discount, 20% of 420 =336.  Loss =350-336=Rs14.
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Most Upvoted Answer
A shopkeeper marks up the price of his product by 20%. If he increases...
Given:
- The shopkeeper marks up the price of his product by 20%.
- He increases the discount from 5% to 10%.
- The profit decreases by Rs 2.

To find:
- The profit/loss if the shopkeeper gives a discount of 20% on the marked price.

Assumptions:
- Let the cost price of the product be 'x'.
- Let the marked price be 'y'.

Calculating the initial selling price:
- The shopkeeper marks up the price of his product by 20%.
- So, the selling price becomes y + 20% of y = 1.2y.

Calculating the initial discount and profit:
- Initially, the discount is 5% of the marked price.
- So, the discount amount = 5% of y = 0.05y.
- The selling price after discount = 1.2y - 0.05y = 1.15y.
- The profit = Selling price - Cost price = 1.15y - x.

Calculating the new discount and profit:
- The shopkeeper increases the discount from 5% to 10%.
- So, the new discount amount = 10% of y = 0.1y.
- The selling price after new discount = 1.2y - 0.1y = 1.1y.
- The new profit = Selling price - Cost price = 1.1y - x.

Given:
- The new profit is Rs 2 less than the initial profit.
- So, the new profit = initial profit - Rs 2.

Equating the new profit and the initial profit:
1.1y - x = 1.15y - x - 2.

Simplifying the equation:
1.1y - 1.15y = -2.

Solving the equation:
-0.05y = -2.

Calculating the value of y:
y = -2 / -0.05 = 40.

Calculating the profit/loss with a discount of 20%:
- The discount is now 20% of the marked price.
- So, the discount amount = 20% of 40 = 0.2 * 40 = 8.
- The selling price after the 20% discount = 40 - 8 = 32.
- The profit = Selling price - Cost price = 32 - x.

Given:
- The profit/loss is Rs 14.
- So, 32 - x = -14.

Solving the equation:
x = 32 + 14 = 46.

Conclusion:
- If the shopkeeper gives a discount of 20% on the marked price, he would earn a loss of Rs 14.
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A shopkeeper marks up the price of his product by 20%. If he increases the discount from 5% to 10%, the profit would decrease by Rs 2a)How much profit/ loss would he earn if he gives a discount of 20% on the marked price?1. Rs 14 lossb)Rs 14 profitc)Rs 20 lossd)Rs 20 profitCorrect answer is option 'A'. Can you explain this answer?
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A shopkeeper marks up the price of his product by 20%. If he increases the discount from 5% to 10%, the profit would decrease by Rs 2a)How much profit/ loss would he earn if he gives a discount of 20% on the marked price?1. Rs 14 lossb)Rs 14 profitc)Rs 20 lossd)Rs 20 profitCorrect answer is option 'A'. Can you explain this answer? for UPSC 2024 is part of UPSC preparation. The Question and answers have been prepared according to the UPSC exam syllabus. Information about A shopkeeper marks up the price of his product by 20%. If he increases the discount from 5% to 10%, the profit would decrease by Rs 2a)How much profit/ loss would he earn if he gives a discount of 20% on the marked price?1. Rs 14 lossb)Rs 14 profitc)Rs 20 lossd)Rs 20 profitCorrect answer is option 'A'. Can you explain this answer? covers all topics & solutions for UPSC 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for A shopkeeper marks up the price of his product by 20%. If he increases the discount from 5% to 10%, the profit would decrease by Rs 2a)How much profit/ loss would he earn if he gives a discount of 20% on the marked price?1. Rs 14 lossb)Rs 14 profitc)Rs 20 lossd)Rs 20 profitCorrect answer is option 'A'. Can you explain this answer?.
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