The new "Hungry for Apples?" campaign has been a resounding success, so that the quantity demanded is now 100% greater than before the ad campaign. If the curve above represents demand after the campaign, what was the original quantity demanded when price was $4.40? a. 100 b. zero c. 50 d. 25

Question

Business

August Herrera

2 February, 03:48

The new "Hungry for Apples?" campaign has been a resounding success, so that the quantity demanded is now 100% greater than before the ad campaign. If the curve above represents demand after the campaign, what was the original quantity demanded when price was $4.40? a. 100 b. zero c. 50 d. 25

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Answers (1)

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Jimmy Petty · Answer 1

Correct option is B.

Original quantity demanded was 25.

Explanation:

We know that quantity demanded has risen by 100%.

New quantity is double that of the previous quantity.

If new quantity is 50 at P=$4.40, old quantity demanded must be 25.

To check if 25 was the old quantity demanded, ((50-25) / 25) * 100 = 100% increase