When you are using percentages in microeconomics calculations, which of the following is the correct way to convert a percentage to a decimal for use in formulas?

• A. Subtract 100 from the percentage
• B. Multiply the percentage by 100
• C. Add 100 to the percentage
• D. Divide the percentage by 100

Answer: (D)

Verified step by step guidance

1. Understand that percentages represent a part out of 100, so to convert a percentage to a decimal, you need to express it as a fraction of 1.
2. Recall that dividing a percentage by 100 moves the decimal point two places to the left, converting it from a percent to a decimal form.
3. Write the conversion formula as: \(\text{Decimal} = \frac{\text{Percentage}}{100}\).
4. Apply this formula when using percentages in microeconomic formulas to ensure calculations are accurate and consistent.
5. Avoid incorrect methods such as subtracting 100, adding 100, or multiplying by 100, as these do not correctly convert percentages to decimals.