A price rises by and then falls by . What is the net percent change from the original price?

Answer and explanation

Correct answer: A. -12%

  1. Step 1: Assume an initial reference price of . A 10% increase yields .
  2. Step 2: A subsequent 20% reduction applies to the elevated price : .
  3. Step 3: Calculate the net percentage change from the initial price : .
Answer
-12%.

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