Gopal bought a cell phone and sold it to Ram at 10% profit. Then Ram wanted to sell it back to Gopal at 10% loss. What will be Gopal’s position if he agreed?
Answer & explanation
Answer: (c) Gain 1%
Take Gopal's cost as ₹100. Ram pays ₹110 and offers the phone back at 10% less, ₹99 — ₹1 below what Gopal first paid, a 1% gain. UPSC's options compare this buy-back price with Gopal's original cost.
- Let Gopal's cost be ₹100.
- Sold to Ram at 10% profit: ₹110.
- Ram sells it back at 10% loss on his cost: 110 × 0.9 = ₹99.
- Gopal gets back for ₹99 the phone that first cost him ₹100: a gain of ₹1 on ₹100 = 1%.
- Note: counting both deals, Gopal ends ₹11 ahead (+110 − 99); no option matches that, so the options measure only the buy-back price against his original cost.
Remember · A rise of x% then a fall of x% leaves the price x²/100 % below the start: 10% up, 10% down → 1% lower.
Question and answer: UPSC's official GS Paper II (2017, Series A) — paper ↗ · answer key ↗. Explanation: Minimalist IAS, checked 30 Sept 2026 (how we verify). ·