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Answer: (B) 12.5% gain
Explanation
To calculate the overall profit or loss percentage, we use the effective multiplier method. Let the cost price of 1 g of goods be ₹1.
The merchant sells goods at a 12.5% loss on the cost price. A loss of 12.5% is equivalent to a fraction of 1/8, so the price multiplier is 1 - 1/8 = 7/8.
The merchant uses a 28 g weight instead of a 36 g weight. This means he charges the customer for 36 g but only provides 28 g. The weight multiplier, which represents the gain from using a false weight, is 36/28 = 9/7.
The net multiplier is the product of the price multiplier and the weight multiplier: Net Multiplier = ⅞ × ⁹⁄₇ = ⁹⁄₈
Since the net multiplier is greater than 1, the merchant makes a profit. The profit fraction is 9/8 - 1 = 1/8.
Profit percentage = ⅛ × 100 = 12.5%