I'm so lost! help!

Question

When calculating the cost of a good or service, you often have to consider price markups and discounts. Consider these two statements regarding a discounted item:

The list price of an item is 80 percent of the original price.
The price of the item has been reduced by 80 percent.
Write a pair of linear equations using variables of your choice to prove that these two statements are not equivalent.
Explain how a calculation for percentage (increase or decrease) is different from a calculation that involves multiplying by percentages. Why is the wording of percentage problems so important? Give examples to illustrate your point.

Answer 1

list price = 0.80 · original price

sale price = 0.20 · original price       100% - 80% (the reduction) = 20%.