1. Cost Price (CP) and Selling Price (SP) Calculation:

Given that the Cost Price (CP) of an item is 2,000 rupees and the Selling Price (SP) is 1,600 rupees.

2. Understanding CP and SP:

Cost Price (CP) is the price at which the product was bought, while Selling Price (SP) is the price at which the product is sold.

3. Calculating Profit or Loss:

To determine if there is a profit or loss, we can use the formula:
Profit = SP - CP
Loss = CP - SP

4. Calculating Profit or Loss in this Scenario:

In this case, when we calculate the profit or loss:
Profit = 1,600 - 2,000 = -400 rupees

5. Interpreting the Result:

A negative value indicates a loss. Therefore, in this scenario, the seller incurred a loss of 400 rupees by selling the item at 1,600 rupees when the cost price was 2,000 rupees.

6. Summary:

In summary, the Cost Price (CP) of the item was 2,000 rupees, and the Selling Price (SP) was 1,600 rupees. The calculation showed a loss of 400 rupees for the seller.