If a Series of Compound Percent Changes Are All Positive

question 361

Essay

If a series of compound percent changes are all positive, is the overall percent change larger or smaller than the sum of the individual changes? Justify your answer.

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Definitions:

Fast Food

Quick service food, often pre-prepared or quickly made, served in restaurants or outlets for rapid consumption.

Substitutes

Alternative products or services that can fulfill the same need or function as another in the eyes of consumers.

DVD Players

Electronic devices designed to play DVDs, compact discs often containing movies or other video content.

Television Sets

Electronic devices designed to receive broadcast signals and display them as visual images.