Question

For the following real-world examples, determine whether each situation represents a percent increase or a percent decrease. ( increase or decrease )

Sales tax on an item is a percent .

A discount on an item is a percent .

A tip on a bill is a percent

Answer 1

1. increase
2. decrease
3. increase

Explanation:

• A sales tax is ALWAYS an increase. That's why governments use sales taxes.
• A discount is ALWAYS a decrease. That's it's definition. You are being given a break.
• A tip is meant to supplement the pay someone gets. It's an increase from your point of view.