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If the price of an article went up by 20%, then by what percent should it be brought down to bring it back to its original price?

Correct answer: A. 16 2/3%

  • A. 16 2/3%
  • B. 20%
  • C. 22 1/3%
  • D. 15%
  • E. None of these

Explanation

Take the original price as 100 units. After a 20% increase it becomes 120 units, so the required reduction is 20 units out of the new price of 120 units: (20 ÷ 120) x 100 = 16 2/3%. The likely trap is 20%, because the reduction percentage must be calculated on the increased price, not the original price.

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Percentages express a quantity as parts per hundred and support calculations involving increases, decreases, discounts, commissions, taxes, and successive changes. Questions require distinguishing percentage change from percentage points and identifying the original value when a final value and its percentage change are given.

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