Provide an appropriate response.The price of an item is reduced by 20% in a sale. Two weeks later the price is increased to 20% more than the sale price. Has the item been restored to its original price? If not, is its price now higher or lower than the original price? Explain.

Question

What will be an ideal response?

Answer 1

The item has not been restored to its original price. Its price is now lower than the original price. The amount of the increase was less than the amount of the discount since 20% of a smaller number (i.e., the sale price) is less than 20% of a larger number (i.e., the original price). For example, if the original price was $100, the sales price would be $80, and the final price would be $96. (Explanations will vary.)