Suppose when the price of coffee beans goes from $1 to $1.20 per pound, production increases from 90 million pounds of coffee beans to 110 million pounds per year. Using the mid-point method, what is the percentage change in quantity supplied?
A) 20 percent
B) 18 percent
C) 60 percent
D) 6 percent

Question

Quizplus · Accepted Answer

The percentage change in quantity supplied is calculated as follows:Percentage change in quantity supplied = (Change in quantity supplied / Average quantity supplied) x 100= ((110 - 90) / ((110 + 90) / 2)) x 100= (20 / 100) x 100= 20%Therefore, the percentage change in quantity supplied is 20%.

Suppose When the Price of Coffee Beans Goes from $1