Suppose the price of a silk tie rises from $45 to $55. Using the midpoint method, what is the percentage change in price?
A) 20 per cent
B) 100 per cent
C) 10 per cent
D) -10 per cent
E) -20 per cent

Question

Quizplus · Accepted Answer

The midpoint method for calculating the percentage change in price uses the formula: [(New Price - Old Price) / ((New Price + Old Price) / 2)] * 100. Substituting the given values: [(55 - 45) / ((55 + 45) / 2)] * 100 = (10 / 50) * 100 = 20 per cent.

Suppose the Price of a Silk Tie Rises from $45