Question

The price of a large pizza decreased from $22.00 to $18.00. As a result, the quantity demanded of skateboards increased from 330.00 to 350.00. 1st attempt Part 1(1 pt)See Hint Using the midpoint formula, what is the percentage change observed for the price of a large pizza? Give your answer to two decimal places.

Answer 1

Answer:

-18.18%

Explanation:

The percentage change is the ratio of the change in price divided by the initial price, it can be calculated by the formula below:

Percentage change = $\frac{(Pn - Po)}{Po} * 100%$  

Where                  Pn = New price

                            Po = Initial or old price

                            Pn =  $18

                            Po = $22

Percentage change = {($18 - $22)/$22} * 100%

                                 = {($18 - $22)/$22} * 100%

                                 = {-$4/$22} * 100%

                                 = -0.1818181818 * 100%

                                 = -18.18181818%

                                 = -18.18%              (to two decimal places).  

The negative figure means they are complementary goods, that is goods that are consumed together.