Answer to Question #269041 in Financial Math for Soph

Question

The market share of Galaxy Industries' main product increased by 20 percentage points last year. If the share changed from 50 to 70 percent of the total market, what was the actual percent change in the market share?

a.20% increase

b.20% decrease    

c.40% increase

d.40% decrease

Answer 1

percent change = (Ending price - starting price)/Starting price

percent change = $(70-50)/50=0.4=40\ \%$

Answer: c.40% increase