Question

A chocolate manufacturer sells a 320g ar of chocolate for 50p. The size of the bar is reduced by 20%, and the price to 42p.

Is the chocolate bar better, the same or less value value?

Answer 1

less value

Explanation:

To deterimine if value was improved or not, we need to compare the price reduction to the size reduction.

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The reduction in price is ...

((new value)/(old value) -1) × 100%

= (42/50 -1) × 100% = -16%

The size reduction of 20% is more than the price reduction of 16%, so the chocolate bar is less value.

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Additional comment

Compared to the original value, the new price to chocolate ratio is ...

0.84/0.80 = 1.05

Effectively, the price was raised by 5%.