a department store perceived a run on a lower priced garment and raised the price by 20 % to keep stock available until another shipment arrived . customers fumed and the department store manager allowed them to purchase the garments at 80 % of the new price to save face . what was the difference in the new retail price and the price the customers were allowed to pay instead ?
quantity x rate = price 1 x 1 = 1 0.8 x 1.20 = 0.960 decrease in price = ( 0.040 / 1 ) ã — 100 = 4.0 % answer = option a
multiply(subtract(const_1, multiply(divide(80, const_100), divide(add(const_100, 20), const_100))), const_100)