Question

Suppose that at a gas station across the street, prices are always 20% higher than Bobs. In absolute dollar terms, the diffe
Two stores in a mall are having promotions. The first, Annies Attic, is offering $20.00 off any purchase. The other, Bettys
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Answer #1

1)

Difference is given in percentage terms. It means that difference will be higher if cost is higher.

Correct option is

greater

2)

Discount
Item Original Price (Dollars) $20.00 off (Dollars) 40% off (Dollars)
A music box 80 80-20=60 80*(1-40%)=48
A faux Ming Vase 60 60-20=40 60*(1-40%)=36

First we estimate the original price,x , at which after discount price is same. i.e.

x-20=x*(1-40%)

x-20=0.6x

0.4x=20

x=$50

It indicates that after discount price is cheaper at Betty's Breakables if original price is higher than $50.

So, customer should buy from Betty's breakables if original price is higher than $50 otherwise from Annie's Attic.

At a price of $50, customer can choose any store.

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