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 led 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 is correct.

Question

Quizplus · Accepted Answer

The midpoint formula for percentage change is:% Change = [(New Value - Old Value) / ((New Value + Old Value) / 2)] * 100For price:% Change = [(17 - 15) / ((17 + 15) / 2)] * 100 = 12.5%For quantity demanded:% Change = [(900 - 1,000) / ((900 + 1,000) / 2)] * 100 = -10.0%Therefore, the correct answer is A) 12.5; 10.0.

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