Shop prices and GST

Percentage points A percentage point measures the gap between two percentages. Subtract the old rate from the new rate, then state the direction. A relative percentage change measures that gap compared with the old rate. Divide the gap by the nonzero old rate and express the result as a percentage. Example A club’s participation rate rises from 40% to 50%. The increase is 50-40=10 percentage points. The rate itself has risen by 1040 x 100%=25% relative to its starting value. Check your label. “10 percentage points” compares the rates directly. “25% increase” compares the gap with the starting rate. Changes in the number of participants also depend on the number of club members in each period.

A percentage point measures the gap between two percentages. Subtract the old rate from the new rate, then state the direction. A relative percentage change measures that gap compared with the old rate. Divide the gap by the nonzero old rate and express the result as a percentage.

A club’s participation rate rises from 40% to 50%. The increase is \(50-40=10\) percentage points. The rate itself has risen by \(\dfrac{10}{40}\times100\%=25\%\) relative to its starting value.

Check your label. “10 percentage points” compares the rates directly. “25% increase” compares the gap with the starting rate. Changes in the number of participants also depend on the number of club members in each period.