Question Details

Detailed explanation and options for the selected question.

If the cost price of an article is increased by 20% and then decreased by 20%, what is the net effect?

A. No change
B. 4% profit
C. 4% loss
D. 20% loss

Explanation:

A 20% increase followed by a 20% decrease results in a net 4% loss because the decrease is taken on a higher base.