document.write( "Question 496708: If the cost of a cell phone has decreased 400% during the past 10 years, does that correspond to a cost decrease of four times? \n" ); document.write( "
Algebra.Com's Answer #336550 by Theo(13342)\"\" \"About 
You can put this solution on YOUR website!
i'm not sure you can say that.
\n" ); document.write( "here's why:\r
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\n" ); document.write( "\n" ); document.write( "suppose the cost was $500 per month 10 years ago.
\n" ); document.write( "suppose the cost is now $100 per month.
\n" ); document.write( "the cost has decreased by the following formula:
\n" ); document.write( "$500 - x*$500 = $100
\n" ); document.write( "add x*$500 to both sides of this equation and subtract $100 from both sides of this equation and you get:
\n" ); document.write( "$500 - $100 = x*$500
\n" ); document.write( "combine like terms to get:
\n" ); document.write( "$400 = x*$500
\n" ); document.write( "divide both sides of this equation by $500 to get:
\n" ); document.write( "$400 / $500 = x which results in:
\n" ); document.write( "x = 4/5 which is equal to 80%.\r
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\n" ); document.write( "\n" ); document.write( "the original formula of:
\n" ); document.write( "$500 - x*$500 = $100 becomes:
\n" ); document.write( "$500 - .8*$500 = $100 which becomes:
\n" ); document.write( "$500 - $400 = $100 which becomes:
\n" ); document.write( "$100 = $100 which is true, confirming the value of x = .8 as good.\r
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\n" ); document.write( "\n" ); document.write( "if you are looking at an increase in price, then the percentage figure can go higher than 100%.\r
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\n" ); document.write( "\n" ); document.write( "]if you are looking at a decrease in price, then the percentage figure has to be less than 100%, otherwise the cost goes to 0 or below which is not good for business.\r
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\n" ); document.write( "\n" ); document.write( "if you say that the previous price was 400% more than the current price, then you are talking about something entirely different.\r
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\n" ); document.write( "\n" ); document.write( "now the formula becomes:\r
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\n" ); document.write( "\n" ); document.write( "p = c + 4c which results:
\n" ); document.write( "p = 5c\r
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\n" ); document.write( "\n" ); document.write( "this says that the previous price was 5 times the current price.
\n" ); document.write( "let's see if this works.\r
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\n" ); document.write( "\n" ); document.write( "assume the current price is $100.
\n" ); document.write( "if you say the previous price was $400 more than that, then the previous price was equal to $500.
\n" ); document.write( "that equates to a price that is 5 times the current price.\r
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\n" ); document.write( "\n" ); document.write( "the numbers are very tricky to work with, so you have to be careful how you express what you are trying to say.\r
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\n" ); document.write( "\n" ); document.write( "you can say that the previous price is 400% higher than the current price, but you can't say that the current price is 400% lower than the previous price.\r
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\n" ); document.write( "\n" ); document.write( "that's my thinking.
\n" ); document.write( "i think i know what you meant, but it is technically wrong to express it the way that you did.\r
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\n" ); document.write( "\n" ); document.write( "you can add more than 100% of the previous price and get a valid answer.
\n" ); document.write( "you can't subtract more than 100% of the previous price and get a valid answer.
\n" ); document.write( "the answer will be negative which you do not want to do unless you are paying people to take the product off your hands.\r
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