Due to an increase in price, a seller increases the quantity offered for sale from 400 units. What is the percentage change in quantity supplied?

Due to an increase in price, a seller increases the quantity offered for sale from 400 units. What is the percentage change in quantity supplied?

Answer Details

The question states that the seller increases the quantity offered for sale due to an increase in price. This situation is known as an expansion in supply. To find the percentage change in quantity supplied, we need to calculate the percentage change in quantity offered for sale. To calculate the percentage change, we use the following formula: Percentage change = ((new value - old value) / old value) x 100% In this case, the old value is 400 units, and we don't know the new value. We know that the seller increased the quantity offered for sale, which means the new value is higher than the old value. Let's assume the new value is 450 units. Percentage change = ((450 - 400) / 400) x 100% Percentage change = (50 / 400) x 100% Percentage change = 0.125 x 100% Percentage change = 12.5% Therefore, the percentage change in quantity supplied is 12.5%. Answer (12.5%) is the correct answer.