A man's wage was reduced by 50%. Again, the wage was increased by 50%. Find his loss in percentage.

Understand the Problem

The question is asking us to find the percentage loss in wages after a sequence of changes: first a reduction of 50%, followed by an increase of 50%. To solve this, we need to understand how these percentage changes affect the initial wage and then calculate the loss compared to the original wage.

Answer

$25\%$
Answer for screen readers

The percentage loss in wages is $25%$.

Steps to Solve

  1. Calculate the wage after a 50% reduction

Start with an initial wage, let's call it $W$.

After a reduction of 50%, the new wage becomes:

$$ W_{\text{reduced}} = W - 0.5W = 0.5W $$

  1. Calculate the new wage after a 50% increase

Now, we take the reduced wage $W_{\text{reduced}}$ and increase it by 50%. The new wage will be:

$$ W_{\text{increased}} = W_{\text{reduced}} + 0.5 \times W_{\text{reduced}} $$

Substituting for $W_{\text{reduced}}$:

$$ W_{\text{increased}} = 0.5W + 0.5 \times 0.5W = 0.5W + 0.25W = 0.75W $$

  1. Calculate the percentage loss in wages compared to the original wage

Now, we need to find the percentage loss in wages from the original wage $W$ to the new wage $W_{\text{increased}}$. The loss can be calculated as:

$$ \text{Loss} = W - W_{\text{increased}} = W - 0.75W = 0.25W $$

To find the percentage loss:

$$ \text{Percentage Loss} = \left( \frac{\text{Loss}}{W} \right) \times 100% = \left( \frac{0.25W}{W} \right) \times 100% = 25% $$

The percentage loss in wages is $25%$.

More Information

This problem is a classic example of how successive percentage changes can lead to unexpected outcomes. The common intuition might suggest that regaining 50% after losing 50% would lead to breaking even, but as illustrated, the actual result is a loss.

Tips

  • Assuming symmetrical outcomes: It's important to recognize that a 50% increase after a 50% decrease does not recover the original amount due to the base value changing.
  • Not correctly applying percentage calculations: Ensure to distinguish between reducing and increasing values based on their current amounts.

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