Percents up and down. Between March 2007 and June 2007 the average price of regular gasoline increased from $2.40 per gallon to $3.00 per gallon.

(a) Verify that this is a 25% increase in price.

(b) If the price of gasoline decreases by 25% from its June level of $3.00 per gallon, what would be the new price? Notice that a 25% increase followed by a 25% decrease does not take us back to the starting point.

188 Part I Review