Question

The quantities x and y are positive. If x is

decreased by 20 percent and y is increased by
20 percent, then the product of x and y is

Answer 1

Positive

Explanation:

Two negative numbers, no matter how small or large are always positive when multiplied. Same goes for two positive numbers. If it was positive beforehand that means both numbers were either negative or positive. A percentage of a negative number is still negative and a percentage of a positive number is still positive so the answer won't change.

Answer 2

Decreased by 4%