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%. Acustomer then says that the shoes are back at the original price.d. By what percent should the shoes be decreased in order to have the priceback at $150?Kk

Answer 1

Explanations:

Given the following parameters;

Original price of shoe = $150

If the price is increased by 40%, the new price will be expressed as:

`\begin{gathered} New\text{ price}=\$150+(0.40*\$150) \\ New\text{ price}=\$150+\$60 \\ New\text{ price}=\$210 \end{gathered}`

If the the owner reduces the price of the shoes by 40% due to falling price, hence;

`\begin{gathered} New\text{ price}=210-(0.4*210) \\ New\text{ price}=210-84 \\ New\text{ price}=\$126 \end{gathered}`