I AM a little confused since the cost rises in 2 month in a row, don't we have to consider how much percent increase in ONE month?

No. The stem says just this: 50% the first-month increase, then the second month a more 50% upon the first increase. Pretty straight.

Regards

i know what the stem means; problem is that the asnwer should be considered the percent increase in one month or 2?

2.

Moreover, the question implies that you do have a threshold over which you must have a gain and not a loss. So, if the shop sells at $18 and in the first month have the increase at $15 , if being this way you have a loss. No matter what.

\(\frac{15-18}{18} = \frac{-3}{18}\) not possible

Considering the 2 you do have a certain amount (in this case 22.5) minus 18, you can obtain the % for not having a loss but a gain.

The gist of the problem is to find the second amount.

Hope this helps.

Regards

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