College

According to https://www.eia.gov/dnav, in March 2000, the average US gas price was $1.56 per gallon. In March 2022, the average gas price was $4.32 per gallon. Calculate the percent change. Erik's answer for part a is $2.76. What is incorrect about his calculation?

Answer :

a) The percent change is approximately 176.9%

b) Erik's answer of $2.76 represents the absolute change in the price of gas, not the percent change.

To calculate the percent change, you need to use the following formula:

Percent Change = New Price − Old Price​ × 100

Let's calculate it step-by-step:

Old Price (March 2000): $1.56 per gallon

New Price (March 2022): $4.32 per gallon

Calculate the absolute change in price:

Absolute Change = New Price - Old Price

Absolute Change = 4.32 - 1.56 = 2.76

Calculate the percent change:

Percent Change = 1.769 x 100 ≈ 176.9%

So, the percent change is approximately 176.9%, which shows the price increased by that percentage from March 2000 to March 2022.

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