A price is increased by 50% and then decreased by 25%. What is the overall change?

Answer and explanation

Correct answer: D. 12.5% increase

  1. Step 1: The multiplier is 1.5 x 0.75 = 1.125.
  2. Step 2: That is a change of 12.5%.
Answer
12.5% increase.
Why not the others: 25% increase, 17.5% increase and 12.5% decrease do not fit.

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