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rss GMAT Practice Question (One of Hundreds)
If the price of a dress is raised by 50%, lowered by 30%, and then lowered by 20%, what is the overall percent change in the price?
Correct Answer: B
Assume the dress costs $100 and perform the subsequent adjustments. Compare the final price with $100.
  1. For simplicity, we may assume that the dress cost $100. We choose $100 because 100 is an excellent number to use when working with percents.
  2. Raising the price by 50% is the same as multiplying by:
    (100+50)/100 = 150/100 = 3/2
    100(3/2) = 150
  3. Similarly, lowering the price by 30% can be done by multiplying the new price by:
    (100-30)/100 = 70/100 = 7/10
    150(7/10) = 135
  4. Finally, we multiply this price by:
    (100-20)/100 = 80/100 = 4/5
    135(4/5) = 84
  5. To find the percent change we subtract the original price from the final price and divide the difference by the original price and multiply by 100 to get a percent.
    ((84-100)/100)*(100%) = -16%
  6. The answer is B