The increase in the price of a certain item was 25%. Then the price was decreased by 20% and then again increased by 10%. What is the resultant increase in the price?
Answer & explanation
Answer: (b) 10%
A 25% rise followed by a 20% fall brings the price exactly back to where it started (1.25 × 0.8 = 1). Only the last 10% rise remains.
- Let the price be ₹100. After a 25% increase it is ₹125.
- A 20% decrease: 125 × 0.8 = ₹100.
- A 10% increase: 100 × 1.1 = ₹110.
- The resultant increase is ₹10 on ₹100, i.e. 10%.
Remember · Successive percentage changes multiply: +25% then −20% cancel, because 5/4 × 4/5 = 1.
Question and answer: UPSC's official GS Paper II (2022, Series A) — paper ↗ · answer key ↗. Explanation: Minimalist IAS, checked 30 Sept 2026 (how we verify). ·