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