An article's price drops by 25%. To return to the original price, the new price must rise by:________?
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Answer: A. 33 1/3 %
Explanation
A price drop of twenty five percent reduces the item value to three quarters of its original price. Restoring the price requires adding back one third of the current reduced price value. Converting this fraction to a percentage gives an exact increase requirement of thirty three and one third percent. Percentage restoration formulas require comparing the price difference against the new discounted price. Fractions represent proportional increases clearly before conversion to standard percentage formats. Symmetric percentage changes do not apply when the base value changes after a discount.
Pricing strategies in retail must account for the asymmetrical nature of percentage markdowns and markups. Business owners calculate restoration percentages to return sale items to original profit margins. Quantitative aptitude tests frequently include percentage reversal problems to evaluate core reasoning. Option b suggests eleven point nine percent which is an incorrect fractional percentage result. Option c proposes nine point one one percent resulting from an improper denominator choice. Option d overestimates the necessary markup percentage by suggesting sixty six and two thirds percent.
- Subject
- Mathematics
- Category
- Mathematics
- Topic
- —
- Difficulty
- medium
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