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The young MBA son of a colour TV manufacturer wanted to position his CTV at par with Samsung and hiked the price of the CTV by 15%. To his fathers surprise, the sale of CTVs in terms of numbers went down by 15%. What was the net effect on the sales revenue of CTVs for the company?

No effect
1.5% increase
2.25% decrease
2.25% increase
Explanation:

Suppose each tv costs 100rs a sales were 100 in number, therefore revenue is 10000.

After hiking price by 15% each tv costs 115rs due to sales decreased by 15% which are 85 in number,

therefore revenue now, is 9775.

Therefore, revenue in % = (9775/1000) $\times$ 100 => 97.75%

Initial revenue percent is 100 => 100-97.75 = 2.25% decrease.

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