If the price of an item increases from $50 to $60, what is the percentage increase?

To determine the percentage increase in price from $50 to $60, follow these steps:

1. Calculate the increase in price: Subtract the original price ($50) from the new price ($60). [

60 - 50 = 10 ] This means the price increased by $10.

2. To find the percentage increase, divide the increase by the original price and then multiply by 100 to convert it to a percentage: [ \text{Percentage Increase} = \left( \frac{\text{Increase}}{\text{Original Price}} \right) \times 100 = \left( \frac{10}{50} \right) \times 100 ] [ = 0.2 \times 100 = 20% ]

Therefore, the correct answer, indicating a 20% increase, reflects the proper calculation of how much the price has grown relative to the original price. Understanding this concept of calculating percentage changes is critical in various real-life applications, such as assessing price changes, discounts, or profit margins.