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Question 238 of 578

The table below illustrates the supply schedule of maize. Use it to answer this question.

                          PRICE(#)           QUANTITY SUPPLIED(kg)
                            24                          480
                            16                          400

The percentage change in quantity supplied for maize is

 

  • A. 16.7%
  • B. 20%
  • C. 80%
  • D. 83.3%

Correct Answer: A

Explanation
To determine the percentage change in quantity supplied for maize based on the provided supply schedule, we will follow a step-by-step approach. Step 1: Identify the Initial and Final Quantities Supplied From the table, we can see the following data:
  • At a price of #24, the quantity supplied is 480 kg.
  • At a price of #16, the quantity supplied is 400 kg.
Step 2: Calculate the Change in Quantity Supplied To find the change in quantity supplied, we subtract the initial quantity from the final quantity: [ \text{Change in Quantity Supplied} = \text{Final Quantity} - \text{Initial Quantity} ] In this case, we will consider the change from the higher price to the lower price: [ \text{Change in Quantity Supplied} = 400 \, \text{kg} - 480 \, \text{kg} = -80 \, \text{kg} ] Step 3: Calculate the Percentage Change The formula for percentage change is: [ \text{Percentage Change} = \left( \frac{\text{Change in Quantity Supplied}}{\text{Initial Quantity}} \right) \times 100 ] Here, we will use the initial quantity supplied at the higher price (#24) as the base: [ \text{Percentage Change} = \left( \frac{-80 \, \text{kg}}{480 \, \text{kg}} \right) \times 100 ] Calculating this gives: [ \text{Percentage Change} = \left( -0.1667 \right) \times 100 = -16.67\% ] Since we are looking for the absolute value of the percentage change, we can express this as: [ \text{Percentage Change} = 16.67\% ] Step 4: Analyze the Options Now, let's compare our calculated percentage change with the provided options:
  • A. 16.7% (This is the closest to our calculated value of 16.67%)
  • B. 20% (This is higher than our calculated value)
  • C. 80% (This is significantly higher and not relevant to our calculation)
  • D. 83.3% (This is also significantly higher and not relevant)
Conclusion The correct answer is A. 16.7% because it accurately reflects the percentage change in quantity supplied based on the calculations we performed. Summary of Key Points
  • The change in quantity supplied was calculated as -80 kg.
  • The percentage change formula was applied using the initial quantity supplied at the higher price.
  • The correct answer is A. 16.7%, as it matches our calculated percentage change.
  • Other options were either too high or not relevant to the calculated change.
This thorough breakdown should help you understand how to approach similar questions regarding supply schedules and percentage changes in agricultural economics.
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