Future Business Leaders of America (FBLA) Marketing Practice Test

What is the percentage change in price if Little Feet raises the price of shoes from $18 to $25?

1. 39%

2. 35%

3. 30%

4. 45%

The correct answer is: 39%

To determine the percentage change in price when Little Feet raises the price of shoes from $18 to $25, you can use the formula for percentage change, which is calculated as: \[ \text{Percentage Change} = \frac{\text{New Price} - \text{Old Price}}{\text{Old Price}} \times 100 \] First, calculate the change in price: \[ \text{New Price} - \text{Old Price} = 25 - 18 = 7 \] Next, divide the change in price by the old price: \[ \frac{7}{18} \approx 0.3889 \] Now, convert this into a percentage by multiplying by 100: \[ 0.3889 \times 100 \approx 38.89\% \] When rounded, this value is approximately 39%. This shows that the price increased by 39% when the price of shoes was raised from $18 to $25. Understanding how to apply the formula for percentage change can be crucial in various marketing and business scenarios where price adjustments affect consumer behavior and financial performance.