Suppose the price of a DVD rose from $15 to $17 and the quantity demanded decreased from 1,000 per month to 900 per month.Using the midpoint formula,the ________ percent change in price lead to a ________ percent change in the quantity demanded.
A) 12.5; 10.5
B) 13.3; 10.0
C) 11.8; 11.1
D) 8.0; 9.5
E) None of the above answers are correct.

Question

Quizplus · Accepted Answer

The midpoint formula for percentage change is:% Change = (New Value - Old Value) / ((New Value + Old Value) / 2) * 100For price, the percentage change is:% Change = (17 - 15) / ((17 + 15) / 2) * 100 = 12.5%For quantity demanded, the percentage change is:% Change = (900 - 1000) / ((900 + 1000) / 2) * 100 = -10.5%Therefore, the correct answer is A) 12.5; 10.5.

Suppose the Price of a DVD Rose from $15 to $17