Question

The price of a computer was marked up by 50% and then marked down by 50%.

Answer 1

Answer:

James is wrong because if you increase something's price by 50%, and decrease it by 50% of the new price, it will be lower than the original price.

Step-by-step explanation:

Let's say that the computer's price is around $1,000.

Since we have to mark it up by 50%, we have to turn this into a decimal and multiply that decimal by the original price. Then add the product to the original price

0.5 x 1,000 = 500

500 + 1,000 = 1,500

The marked up price of the computer is $1,500, then reduce it by 50%, do the same process as the first step but don't add it to the original price this time.

0.5 x 1,500 = 750

The computer's final price is $750

Answer 2

Answer:

percent change = 25% (drop)

Step-by-step explanation:

James reasoning is incorrect

Let the original price of the computer = $1000

If the computer was marked up by 50% then 1000 x 1.5 = $1500

If the computer was then marked down by 50% then 1500 x 0.5 = $750

Percent change = [ (difference between final value and initial value) ÷ initial value] x 100

= [ (1000 - 750) ÷ 1000 ] x 100

= 25% (drop)