While selling a watch, a shopkeeper gives a discount of 5% on its marked price…

Profit is calculated as Selling Price minus Cost Price. When the cost price of an item stays the same, the difference in profit between two different selling prices is simply the difference between those two selling prices — the cost price cancels out and does not need to be known separately.

1. Let the marked price be ₹x.

2. Selling price at 5% discount = x − 0.05x = 0.95x.

3. Selling price at 10% discount = x − 0.10x = 0.90x.

4. Since the cost price is fixed, the drop in profit when the discount increases from 5% to 10% equals the drop in selling price: 0.95x − 0.90x = 0.05x.

5. This drop is given as ₹25, so 0.05x = 25.

6. Solving, x = 25 / 0.05 = ₹500.

Checking back: at a marked price of ₹500, the selling prices are ₹475 (5% discount) and ₹450 (10% discount), a difference of ₹25 — matching the given condition.

So, the marked price of the watch is ₹500.