Related to the Economics in Practice on page 302: A pair of shoes at a local department store has a marked retail price of $80. These shoes are on a sale table where all items are priced at 25 percent off the retail price. The store is also having a promotion of an additional 25 percent off all sale-priced shoes. Based on these stackable discounts, what is the actual selling price of these shoes?
A) $25
B) $40
C) $45
D) $60

Question

Quizplus · Accepted Answer

The first discount of 25% reduces the price to $60 ($80 - $20). The second discount of 25% applies to the reduced price, taking off another $15 ($60 * 25% = $15), making the final price $45 ($60 - $15).

Related to the Economics in Practice on Page 302: a Pair