A price rises by and then falls by . What is the net percent change from the original price?
Answer and explanation
Correct answer: A. 8%
- Step 1: Express each sequential price adjustment as a fractional multiplier: an increase of gives , and a decrease of gives .
- Step 2: Multiply the two consecutive multipliers: .
- Step 3: Compute the net percentage change: .
Answer
8%.
Why not the others: 10% is the simple algebraic difference (); -10% inverts the direction of net change; 13% and 3% result from evaluating the difference with incorrect percentage scaling.
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