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If the percent of change is negative, what does this indicate?

  1. A percent of increase

  2. A percent of decrease

  3. No change occurred

  4. A constant value

The correct answer is: A percent of decrease

When the percent of change is negative, it indicates a decrease in value. This is because percent of change is calculated by taking the difference between the new value and the original value, dividing that difference by the original value, and then multiplying by 100 to express it as a percentage. For example, if a price drops from $50 to $30, the change can be calculated as follows: the difference is $30 - $50 = -$20. When this is calculated as a percent of the original $50, it becomes \((-20 / 50) * 100 = -40\%\). This negative result directly reflects a decrease, affirming that a negative percent of change denotes a loss in value rather than any increase or stable condition, which would result in a positive percent of change or zero percent change, respectively. Therefore, this understanding aligns perfectly with the correct choice indicating a percent of decrease.