Understanding Price Increases through Box Size Reduction

The video tutorial explains how companies may hide price increases by reducing product sizes while maintaining the same price. It uses a cereal box example to demonstrate this concept. Initially, the cost per ounce is calculated for the original box size. Then, the new box size is determined after a 20% reduction. The tutorial proceeds to calculate the new price per ounce and finally, the percent increase in price, which turns out to be 24%. This method of price increase is common in the market.

What is one method companies use to disguise price increases?

• Improving product quality

• Offering discounts

• Reducing the product size while keeping the price the same

• Increasing the product size

How do you calculate the original cost per ounce of a product?

• Multiply the total cost by the number of ounces

• Divide the total cost by the number of ounces

• Subtract the number of ounces from the total cost

• Add the total cost to the number of ounces

What is the original cost per ounce of the cereal?

• 0.35 dollars per ounce

• 0.20 dollars per ounce

• 0.25 dollars per ounce

• 0.30 dollars per ounce

If a box size is reduced by 20%, what percentage of the original size does the new box represent?

• 90%

• 80%

• 70%

• 60%

What is the new box size after a 20% reduction from 20 ounces?

• 17 ounces

• 14 ounces

• 16 ounces

• 15 ounces

How do you find the new price per ounce after a box size reduction?

• Add the new box size to the original price

• Subtract the new box size from the original price

• Multiply the new box size by the original price

• Divide the original price by the new box size

What is the new price per ounce after the box size is reduced to 16 ounces?

• 0.30 dollars per ounce

• 0.29 dollars per ounce

• 0.28 dollars per ounce

• 0.31 dollars per ounce

What is the formula to calculate the percentage increase in price per ounce?

• Subtract the old price from the new price and divide by the old price

• Multiply the new price by the old price and divide by the new price

• Add the new price to the old price and divide by the old price

• Subtract the new price from the old price and divide by the new price

What is the percentage increase in price per ounce after the box size reduction?

• 20%

• 26%

• 22%

• 24%