UPSC Prelims 2021·CSAT·Quantitative Aptitude·Arithmetic

If the price of an article is decreased by 20% and then the new price is increased by 25% , then what is the net change in the price?

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Last updated 8 Jul 2026, 4:39 pm IST
  1. A0%Correct
  2. B5% increase
  3. C5% decrease
  4. DCannot be determined due to insufficient data

Explanation

Let the original price of the article be 100 units.

  1. First change: The price is decreased by 20%. New Price = 100 - (20% of 100) = 100 - 20 = 80 units.

  2. Second change: The new price (80 units) is then increased by 25%. Increase amount = 25% of 80 = (25/100) * 80 = (1/4) * 80 = 20 units. Final Price = 80 + 20 = 100 units.

The final price (100 units) is the same as the original price (100 units). Therefore, the net change in the price is 0%.

Analysis of options: A) 0%: This is correct, as calculated above. The price returns to its original value. B) 5% increase: Incorrect. The final price is not higher than the original. C) 5% decrease: Incorrect. The final price is not lower than the original. D) Cannot be determined: Incorrect. The percentage changes are sufficient to determine the net change.

Quantitative Aptitude: If the price of an article is decreased by 20% and then the new price is increased by 25% , then what is the net change
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