Question

When the consumer price index (cpi) decreases from 250 to 150, prices decrease by 100%. True or false?

Answer 1

Answer with explanation:

Original Price = $250

Decreased Price = $ 150

Reduction = Original Price - Decreased Price

 =  $ 250 -$ 150

= $ 100

Let reduction Percentage =x %

% Reduction

       $=250 -250 \times \frac{x}{100}=150\\\\\Rightarrow 250-150=250 \times \frac{x}{100}\\\\ \Rightarrow \frac{100}{250}= \frac{x}{100}\\\\\Rightarrow x=\frac{10000}{250}\\\\\Rightarrow x=40$

x=40%

⇒40%  ≠ 100%

→→→When the consumer price index (cpi) decreases from 250 to 150, prices decrease by 100% , is False Statement.