Constant Multipliers

Definition

Constant Multipliers in plain English

Reach for Constant Multipliers when ratios compound across stages (price x quantity, scale factors). Clues include ratio of A to B, each year multiplies by, or scales by. Replace each percent or ratio with a multiplier (1.2, 3/4) and multiply along the chain. Adding percents across stages is illegal; multipliers compose correctly and keep the story dimensionally honest. A 20% rise is 1.2, a 25% fall is 0.75, and the product is the net factor. Micro-example: price rises 20% then quantity falls 25%. Multipliers 1.2 and 0.75 give 1.2 x 0.75 = 0.9, so revenue is 90% of original, not a confused +20 - 25.

Practice Constant Multipliers

Express the ratio of 40 minutes to 2 hours in its simplest form.

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