JLAB Academic Practice Test

To determine the percent increase when an item’s price changes from $40 to $50, the formula for percent increase can be used:

Percent Increase = [(New Price - Original Price) / Original Price] × 100.

In this case, the original price is $40 and the new price is $50. Substituting these values into the formula provides:

Percent Increase = [(50 - 40) / 40] × 100

Percent Increase = [10 / 40] × 100

Percent Increase = 0.25 × 100

Percent Increase = 25%.

This calculation confirms that the correct answer is a 25% increase. It reflects the proper method of finding the difference between the new and original prices, dividing by the original price to find the proportion of the increase, and then converting that to a percentage.