"A merchant marks his goods at 25% above the cost price. Due to a slump in the market,
Channel: Doubtnut
Date: 05/04/2020

"A merchant marks his goods at 25% above the cost price. Due to a slump in the market, his cost reduces by 5%. He thus offers a discount of 8% due to which the sales go up by 25%. Compute the change in the merchant's profit.
a. `5%` higher
b. `7 1/2%\ h igh e r`

c. `8%\ low e r`
d. unchanged"