Finding the percent increase in pricing
About this video
Musical tickets rise from $12.50 to $15. The video finds the increase ($2.50) and divides it by the original price: 2.5 ÷ 12.5 = 0.2 = 20%.
You'll be able to
- find the amount of a price increase.
- find the percent increase by dividing the increase by the original price.
- explain why we divide by the original price, not the new price.
Key words
- Percent increase
- The increase as a percent of the original amount.
- Absolute increase
- The actual amount something went up by, in units such as dollars.
Transcript
- [Instructor] We're told a middle school sells tickets to its fall musical for $12.50. On the day of the show, the price of the tickets increases to $15. By what percent did the price increase? Pause the video and try to calculate that. Okay, so let's just figure out what the absolute price increase is first, and then we could figure out what that was as a percentage of the original price.
So if we go from 12.50 to $15, that increase is the same thing as 15 minus 12.50, which is equal to a $2.50 increase. Now they don't want us just figure out the absolute amount of the increase, they want us to figure out the percent increase. So what we wanna do is figure out what percentage is $2.50 of 12.50.
We wanna do the percentage of the original price, not what we actually grew the price, or how much the price increased to. So it's 2.5 divided by 12.5, and so this is going to be, let's see, this is roughly equal, well, I don't need to approximate it, I'll just use a calculator.
So if we have 2.5 divided by 12.5, we are going to get 0.2, which is the same thing as 20%. So this is 0.2, which is the same thing as a 20% price increase from the 12.50, and we're done.
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