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In these kind of questions when calculating percentage how to identify which value should we take should it be for red paint or blue paint? how do we understand that?
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In these kind of questions when calculating percentage how to identify which value should we take should it be for red paint or blue paint? how do we understand that?
When calculating percentage change, the reference value is the value you are comparing to. This means the reference value always goes in the denominator of the formula.

In this problem, the question asks: What percent less is the cost per square meter when using red paint compared to blue paint? Since we are comparing red to blue, the reference value is the blue paint’s cost, which is why the blue paint value goes in the denominator.
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if the question only asked how much less is cost of red than cost of blue, then we would have simply found only the difference?
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if the question only asked how much less is cost of red than cost of blue, then we would have simply found only the difference?


Yes. If the question asked only “how much less,” we would find the absolute difference in cost per square meter.

Here, red costs 100 cents per square meter and blue costs 125 cents per square meter, so the difference is 25 cents.

But the question asks “what percent less,” so we compare that difference with the blue cost:

25/125 = 20%.
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