Suppose quantity supplied increases from 16 to 24 units. Using the mid-point formula, what is the percentage change in quantity supplied?
A) −40 percent
B) 0.4 percent
C) 4 percent
D) 40 percent

Question

Quizplus · Accepted Answer

The mid-point formula for percentage change is [(New Quantity - Old Quantity) / ((New Quantity + Old Quantity) / 2)] * 100. Plugging in the values, [(24 - 16) / ((24 + 16) / 2)] * 100 = (8 / 20) * 100 = 40 percent.

Suppose Quantity Supplied Increases from 16 to 24 Units