Due to inflation there were two demand increases. after the second increase the price for a certain item became twice as big as the original. by what percent was the first increase, if the second increase was 25%?

The percentage increase in the first demand is 60 %.

Given data:

The second percentage increase in price is, 25%.

Let the initial price in first demand increases by x. And for increment of second demand be y.

Then after the first demand, the new price will be, x(y + 1).

Since, there is 25% increment in second demand, which implies that:

=

Then, new price for the second demand is, 1.25x(y+1).

After the second increase the price for a certain item became twice as big as the original. Which means the price of first demand becomes, 2x.

So, the equation is,

1.25x (y + 1) = 2x

Solving as,

Thus, we can conclude that the percentage increase in the first demand is 60 %.

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