Suppose an increase in price decreases quantity demanded from 210 to 190.Using the mid-point formula,the percentage change in quantity demanded is:
A) 2 = 200 percent.
B) 0.2 = 20 percent.
C) 0.2 = 20 percent
D) 0.1 = 10 percent

Question

Quizplus · Accepted Answer

The mid-point formula for percentage change in quantity demanded is [(Q2 - Q1) / ((Q2 + Q1) / 2)] * 100. Here, Q1 = 210 and Q2 = 190. So, the percentage change is [(190 - 210) / ((190 + 210) / 2)] * 100 = (-20 / 200) * 100 = -10%.

Suppose an Increase in Price Decreases Quantity Demanded from 210