Question

The selling price for a can of soda last year in the school vending machine was $0.75. This year the selling price is $0.70. Find the deflation rate.

-25%

-6.7%

-1.0%

-5.3%

Answer 1

-5.3 % is what i would say the answer is 

Answer 2

Answer: Second option is correct.

Explanation:

Since we have given that

Selling price for a can of soda last year = $0.75

Selling price for a can of soda this year = $0.70

Difference between the selling price for a can = $0.70 - $0.75 = -$0.05

So, Deflation rate would be

`(-0.05)/(0.75)* 100\\\\=-6.7\%`

Hence, Second option is correct.