An item's original price is $50, but a markdown leaves it at $30. What is the percentage discount applied?

To find the percentage discount applied to the original price, you first determine the amount of the discount. The original price is $50, and after the markdown, the price is $30. Therefore, the discount amount is calculated as follows:

Discount Amount = Original Price - Sale Price

Discount Amount = $50 - $30

Discount Amount = $20

Next, to find the percentage discount, you divide the discount amount by the original price and then multiply by 100 to convert it into a percentage:

Percentage Discount = (Discount Amount / Original Price) × 100

Percentage Discount = ($20 / $50) × 100

Percentage Discount = 0.4 × 100

Percentage Discount = 40%

This calculation shows that the percentage discount applied to the original price of $50 is 40%, which is why this option is the correct answer.

Understanding how to compute discounts is essential for pricing strategies in retail and can help in analyzing sales and promotions effectively.