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Question 239 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

Calculate the percentage change in price for maize

  • A. 8.0%
  • B. 33.3%
  • C. 50.0%
  • D. 66.7%

Correct Answer: B

Explanation
To calculate the percentage change in price for maize based on the supply schedule provided, we need to follow a systematic approach. Let's break it down step-by-step. Step 1: Identify the Prices From the table, we have two prices for maize: - Initial Price (P1) = 16 - New Price (P2) = 24 Step 2: Calculate the Change in Price The change in price (ΔP) can be calculated using the formula: [ \Delta P = P2 - P1 ] Substituting the values: [ \Delta P = 24 - 16 = 8 ] Step 3: Calculate the Percentage Change in Price The percentage change in price can be calculated using the formula: [ \text{Percentage Change} = \left( \frac{\Delta P}{P1} \right) \times 100 ] Substituting the values we have: [ \text{Percentage Change} = \left( \frac{8}{16} \right) \times 100 ] Calculating this gives: [ \text{Percentage Change} = 0.5 \times 100 = 50\% ] Conclusion The percentage change in price for maize is 50.0%. Therefore, the correct option is C. 50.0%. Explanation of Other Options
  • A. 8.0%: This option represents the absolute change in price (8) as a percentage of the new price (24), which is incorrect for calculating the percentage change from the original price.
  • B. 33.3%: This option does not correspond to any calculation based on the given prices. It may arise from a misunderstanding of the percentage change formula or incorrect values.
  • D. 66.7%: This option is also incorrect. It could be mistakenly calculated by using the new price as the base instead of the original price, leading to an inflated percentage.
Common Pitfalls
  • Using the wrong base price: Always use the original price (P1) when calculating percentage change.
  • Confusing absolute change with percentage change: Remember that the percentage change is a ratio of the change to the original value, not just the change itself.
Revision Summary
  • The percentage change in price is calculated using the formula: (\left( \frac{\Delta P}{P1} \right) \times 100).
  • Always use the original price as the base for percentage calculations.
  • The correct answer for the percentage change in price for maize is 50.0% (Option C).
  • Be cautious of common mistakes, such as using the new price as the base or confusing absolute change with percentage change.
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