Due to an increase in price, a seller increases the quantity offered for sale from 400 units to 450units. What is the percentage change in quantity supplied?
- 1 %
- 7.5%
-
12.5%
- 20%
The correct answer is: C
Explanation
Percentage change in quantity supplied = \(\frac{(New Value - Old Value)}{Old Value}\) x 100%
New value = 450 units and old value = 400 units.
percentage change in quantity supplied = \(\frac{450 - 400}{400}\) x 100% = 12.5%