Question

If production of a good increases from 48 to 118, what is the percentage change in the quantity produced? Enter a number rounded to two decimal places. Do not enter a percent (%) sign.

The price of a good is $55. If the price of the good increases by 11% then what is the new price of the good? Enter a number rounded to two decimal places. Do not enter a dollar sign.

Answer 1

1) Production of a good increases from 48 to 118. So,

Initial quantity= 48

New quantity= 118

Change in quantity produced= New quantity - initial quantity

Change in quantity produced= 118 - 48

Change in quantity produced= 70

Percentage change in quantity produced tells us the change in quantity produced in terms of percentage.

Percentage change in quantity produced= Change in quantity produced/ initial quantity x 100

Percentage change in quantity produced= 70/48 x 100

Percentage change in quantity produced= 1.4583 x 100

​​​​​​Percentage change in quantity produced= 145.83%

Answer-So, Percentage change in quantity produced= 145.83%

2) The price of the good is $55. The price of the good increases by 11% . It means that the original price of the good has increased by 11% .

So, Change in price= initial price x percentage change in price

Change in price= $55 x 11%

Change in price= $55 x 11/100

Change in price= $55 x 0.11

Change in price= $6.05

Hence, 11% increase in the price has caused the price to increase by $6.05

So, NEW PRICE= INITIAL PRICE + CHANGE IN PRICE

New price= $55 + $6.05

New price= $61.05

Answer- NEW PRICE of the good is $61.05