Question

The price of an item changed from 120$to$ $100$. Then later the price decreased again from 100$to$ $80$. Which of the two decreases was larger in percentage term?

• A. 1st decrease
• B. 2nd decrease
• C. Both decreases are equal
• D. Cannot be determined

Answer 1

The correct option is B 2nd decrease

$\Rightarrow$ The price of item first change form $\$120$ to $\$100$

$\Rightarrow$ Decreased value = $\$120-\$100=\$20$

$\Rightarrow$ % Decreased = $\frac{20}{120}\times 100=16.66\%\approx 17\%$

$\Rightarrow$ Then price decreased again from $\$100$ to $\$80$

$\Rightarrow$ Decreased value = $\$100-\$80=\$20$

$\Rightarrow$ % Decreased = $\frac{20}{100}\times 100=20\%$

$\Rightarrow$ We can see that first decreased is $17\%$ and second is $20\%$, so Second decreased is larger.