Explanation: In this problem, we are dealing with the basic concepts of cost price and selling price. The cost price (CP) is the price at which an item is purchased, and the selling price (SP) is the price at which the item is sold. The relationship between these two prices can be used to determine profit or loss.
Given:
- Cost Price (CP) = 7,400
- Reduction in price = 350
To find the selling price, we need to subtract the reduction from the cost price:
\[ \text{Selling Price (SP)} = \text{Cost Price (CP)} - \text{Reduction} \]
\[ \text{SP} = 7,400 - 350 \]
\[ \text{SP} = 7,050 \]
Thus, the selling price of the wall hanging is 7,050.
This problem involves basic arithmetic operations and understanding the relationship between cost price and selling price. It is important to correctly perform the subtraction operation and to understand that the reduction is subtracted from the cost price to find the selling price. Common mistakes include adding the reduction instead of subtracting it, or making arithmetic errors in the calculation.
In competitive examinations, such as UPSC, SSC, Bank PO, CLAT, and MAT, questions involving cost price, selling price, and basic arithmetic operations are common. These questions test the candidate's ability to perform simple calculations and understand basic economic concepts related to buying and selling.