Future Business Leaders of America (FBLA) Marketing Practice Test

To determine the percentage change in price when Little Feet raises the price of shoes from $18 to $25, you can use the formula for percentage change, which is calculated as:

\[

\text{Percentage Change} = \frac{\text{New Price} - \text{Old Price}}{\text{Old Price}} \times 100

\]

First, calculate the change in price:

\[

\text{New Price} - \text{Old Price} = 25 - 18 = 7

\]

Next, divide the change in price by the old price:

\[

\frac{7}{18} \approx 0.3889

\]

Now, convert this into a percentage by multiplying by 100:

\[

0.3889 \times 100 \approx 38.89\%

\]

When rounded, this value is approximately 39%. This shows that the price increased by 39% when the price of shoes was raised from $18 to $25. Understanding how to apply the formula for percentage change can be crucial in various marketing and business scenarios where price adjustments affect consumer behavior and financial performance.