I'm doing econ homework and trying to figure out one problem by looking at another. It says, "If the MGM Grand drops its price from $200 to $190 per night -- a decrease of approximately 5% -- the quantity of rooms demanded increases from 200 to 220, an increase of about 10%."
How do they get those percentages?
2007-03-02 05:06:28 · 4 answers · asked by rramkay01 2 in Education & Reference ➔ Homework Help
okay i get it a little now. so a 1% increase of $500 is $5?
2007-03-02 05:13:37 · update #1
Looking at 200, we know that 10% would be $20 because you'd move the decimal point over one space to the left. Given that then, 5% would be $10 (half of $20). Going from 200 to 220 is a difference of 20 which is 10%.
Hope that helps.
2007-03-02 05:10:53 · answer #1 · answered by barrych209 5 · 0⤊ 0⤋
If you divide 190 by 200, you get 95% (.95). So the decrease would be the 5% needed to get to a full 100% (the original 200 you started with.)
2007-03-02 13:20:36 · answer #2 · answered by I know the answer 1 · 0⤊ 0⤋
200 decrease 5%
200 (5/100)= 10
200 - 10 = 190
or
190 - 200 = -10
-10/200 * 100 = -5%
200 increase 10%
200 (10/100) = 20
200 + 20 = 220
or
220 - 200= 20
20/200 *100) = 10%
2007-03-02 16:17:29 · answer #3 · answered by -Ivanita- 2 · 0⤊ 0⤋
200 - 190 equals 10.
divide 10 by 200 (original value) and you get 0.05 which is 5%.
2007-03-02 13:14:52 · answer #4 · answered by Spaceman Spiff 3 · 0⤊ 0⤋