Suppose that when the price of coffee beans goes from $1 to $1.20 per pound,production increases from 90 million pounds of coffee beans per year to 100 million pounds.
Using the mid-point method,the percentage change in quantity supplied would be:
A)11 percent.
B)18 percent
C)0.6.
D)6.

Question

Quizplus · Accepted Answer

The percentage change in quantity supplied using the mid-point method is calculated as: [(100 - 90) / ((100 + 90) / 2)] * 100 = (10 / 95) * 100 = 10.53%, which rounds to 11%.

Suppose That When the Price of Coffee Beans Goes from $1