Question

PLS HELP!!! due to inflation nominal prices are usually there were to demand increases. After the second increase the price for a certain item was twice as big as the original. By what percent was the first increase, if the second increase was 25%

Answer 1

The first increase was of 60%.

Explanation:

The initial value of the product is x.

The first increase was of y.

The second increase is of 25%, that is, 1.25.

The final price was double the original, so 2x.

This situation can be modeled by the following equation:

`xy(1.25) = 2x`

We want to find y.

Simplifying by x

`1.25y = 2`

`y = (2)/(1.25)`

`y = 1.6`

After the first increase, the value was 1.6 of the original value, that is a increase as a percent of (1.6 - 1)*100 = 60%.