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1. A trader raised the price of his product by 10% and then he lowered the enhanced price by 10%. Compared to the latest price the first price has been--
- A. lowered by 1%
- B. lowered by 1%
- C. lowered by 1%
- D. lowered by 1%
Answer: Option A
Explanation:
Let's call the original price of the product "P".
The trader raised the price of the product by 10%, so the new price would be P + (P * 0.10) = 1.10P.
The trader then lowered the enhanced price by 10%, so the latest price would be 1.10P - (1.10P * 0.10) = 0.99P.
To compare the latest price to the original price, we can divide the latest price by the original price and multiply by 100 to get the percentage:
Percentage = (0.99P / P) * 100
Percentage = 99%
So the latest price is 99% of the original price. This means that, compared to the latest price, the original price has been raised by 1%.
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