Single correct option
The price of a commodity is first increased by 20%, then decreased by 25%, and finally increased by 50%. Find the net percentage change in the price.
- A. +30%
- B. +35%
- C. +40%
- D. +45%
Show answer and solution
Answer: (B) +35%
Net multiplier = 1.20 × 0.75 × 1.50 = 0.9 × 1.5 = 1.35. So the net change is +35%. Shortcut: successive percentage changes multiply as decimal factors; compute step by step to avoid sign errors — a 25% decrease means multiplying by 0.75, not subtracting 25 from the running total.
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