If x grows at 3 percent and y grows at -2 percent and w = x/y, then w grows at 1 percent.

Question

Quizplus · Accepted Answer

This statement is not true. To show this, we can use the formula for percentage change:

% change in w = % change in x - % change in y

Let's plug in the given growth rates:

% change in x = 3% 
% change in y = F1F1F1S1F1F1F102 %

We don't know what F1F1F1S1F1F1F102 is, but we can see that it's a positive number (since it's subtracted from 1). So % change in y is positive.

Therefore, % change in w = 3% - positive number

Since the positive number is less than 3%, we can conclude that % change in w is less than 3%. Therefore, w does not grow at 1 percent.

If X Grows at 3 Percent and Y Grows at -2