Suppose the price of a box of breakfast cereal rises from $4 to $6. Using the midpoint method, what is the percentage change in price?
A) 67 per cent
B) 40 per cent
C) 50 per cent
D) 33 per cent
E) None of the above answers is correct.

Question

Quizplus · Accepted Answer

The midpoint method calculates the percentage change in price by taking the change in price, dividing it by the average of the initial and final prices, and then multiplying by 100. Here, the change in price is $2 ($6 - $4), and the average price is $5 (($4 + $6) / 2). So, the percentage change = ($2 / $5) * 100 = 40%.

Suppose the Price of a Box of Breakfast Cereal Rises