Question

2. A shop owner raises the price of a $150 pair of shoes by 40%. After a few weeks, because of falling sales, the owner reduces the price of the shoes by 40%. A customer then says that the shoes are back at the original price.
a. What is the mistaken assumption here?



b. Why is that assumption incorrect?



c. What do the shoes actually cost now? show calculation




d. By what percent should the shoes be decreased in order to have the price back at $150? Round to the nearest 10th percentage. (for example if your decimal answer is .058267 your answer would be 5.8267% round to nearest 10th percent answer is 5.8%) show calculation

Answer 1

The mistaken assumption is that the customer thinks the shoes are back to their original price.

The assumption is wrong because the price of the shoe is now lower than $150.

The cost of the shoe now is $126.

In order to retain the price of $150, the percentage decrease should have been 28.6%.

What is the cost of the shoe now?

Price of the shoe after it was increased : 1.4 x 150 = 210

Price of the shoe after it was decreases: (1 - 0.4) x 210

0.6 x 210 = $126

The percentage the price should be decreased for the price to be back to $150 = (150 / 210) - 1 = 28.9%

To learn more about percentages, please check: brainly.com/question/25764815

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