Multiple choice

In a shopping mall the cost of an article was increased by 10% and then it was decreased by 10%. The net increase or decrease percent is:

  1. 1.5% decrease

  2. 1% decrease

  3. 1.5% increase

  4. 1% increase
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

If original price is P, after 10% increase: P × 1.1 = 1.1P. After 10% decrease: 1.1P × 0.9 = 0.99P. The final price is 0.99P, which is 1% less than the original P. This is a classic example of how percentage increases and decreases are not symmetric - a 10% decrease on 110% of original doesn't return to 100%.

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