Let's find the absolute difference first: [tex] 3.75-3.50 = 0.25 [/tex].
Now, we must ask ourselves: which percentage of 3.75 is 0.25? Since we compute the x percent of 3.75 by multiplying it by [tex] \cfrac{x}{100} [/tex], we are posing the following question:
[tex] 3.75\cdot\cfrac{x}{100} = 0.25 [/tex]
Solving for [tex] x [/tex], we have
[tex] x = \cfrac{0.25\cdot 100}{3.75} = \cfrac{25}{3.75} = 6.\overline{6} [/tex]
So, the price decreased by the [tex] 6.7\% [/tex]