Question 62014EconomicsWAEC
Due to an increase in price, a seller increases the quantity offered for sale from 400 units to 450 units. What is the percentage change in quantity supplied
A
1%
B
7.5%
C
12.5%
D
20%
Step-by-Step Explanation
To calculate the percentage change in quantity supplied, subtract the initial quantity from the new quantity, which gives a change of 50 units (450 - 400). Then, divide the change by the initial quantity (400) and multiply by 100 to convert it to a percentage: (50/400) × 100 = 12.5%. This indicates that the quantity supplied increased by 12.5% in response to the price increase.