Question

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, the percentage change in quantity supplied is: Multiple Choice 20 percent 18 percent 0.6 6.0

Answer 1

Answer: 20%

Step-by-step explanation:

Using the midpoint formula, the denominator is an average of the beginning and ending figures;

=
`(Q2 - Q1)/(Q2 + Q1 /2 ) * 100`

=
`(110 - 90)/((110 + 90)/2) * 100`

=
`(20)/(100) * 100`

= 20%