Changing Prices

Welcome! You are encouraged to register with the site and login (for free). When you register, you support the site and your question history is saved.

The cost of an item offered by Company A increased by 15 percent while the cost of that item offered by Company B decreased by 15 percent. The reduced price of Company B's item was what percent of the original price of Company A's item?

(1) The increased price of Company A's item was equal to the original price of Company B's item.

(2) The amount of increase in the price of Company A's item was the amount of decrease in the price of Company B's item.

Review: Changing Prices




Explanation

Let's call the original price of this thing A as sold by Company A and B as sold by company B. The new price is when sold by company A and when sold by company B. We want to find . We will be able to get it by knowing A and B separately and also by knowing any ratio that includes A and B that we can manipulate into a form . On to the statements, separately first.

Statement (1) tells us that . Multiplying both sides by will give us what we are looking for. Sufficient.

Statement (2) tells us that . Similar manipulation to the above will allow us to find . Statement (2) is also sufficient.

The correct answer is (D).


If you believe you have found an error in this question or explanation, please contact us and include the question title or URL in your message.
Continue »