Suppose a stock traded for $40 a share last year, but today the price has risen to $44. In this case, the percentage change is: Percentage Change, % -($44-$40) / $40-10% If a stock price falls from $20 to $18.50, the percentage change in stock price is Similarly, suppose a bike company sold 2,000 bikes this year, but it expects sales growth of 12% for next year. Next year's expected bike sales are bikes. Percentage change and absolute change Suppose that in Year 1, Bob's Burritos' daily sales were $1,000 and Betty's Burgers' daily sales were $2,000. In Year 2, Bob's daily sales increased to $1,400 and Betty's daily sales increased to $2,600. Who experienced the greatest change in daily sales? Betty's daily sales increased by $2,600 - $2,000- $600, while Bob's sales increased by $1,400 So, Betty's Burgers experienced the larger "absolute" change in sales $1,000 $400 However, Bob's Burritos started with much smaller sales, so its "percentage" change was greater. A $400 increase on $1,000 of sales is greater than a $600 increase on $2,000 sales. Bob's Burritos, 90 in sales- Betty's Burgers' % in sales