Back to Questions

The price of an item changed from Rs. 120 to Rs. 100. Then later the price decreased again from Rs. 100 to Rs. 80.

Which can be said about the two decreases in percentage term?


$1^{st}$ decrease is larger


$2^{nd}$ decrease is larger


both are equal


nothing can be said

 Hide Ans

Option(B) is correct

First decrease in percent,

$\dfrac{\text{part}} {\text{whole}} = \dfrac{(120 - 100)}{ 120}$

$= 0.17 = 17\%$

Second decrease in percent,

$\dfrac{\text{part}}  {\text{whole}} = \dfrac{(100 - 80) }{ 100 }$

$= 0.20 = 20\%$

The second decrease is larger in percent term.

The parts were the same in both cases, but the whole was smaller in the second decrease.

(0) Comment(s)