The presence of bubbles might indicate the formation of a new substance because bubbles indicate formation of gas.
On placing the pieces of potato in a container of hydrogen peroxide will cause a chemical reaction to occur between catalase and hydrogen peroxide. The enzyme will breakdown the hydrogen peroxide into oxygen and water, where oxygen release will be evident in the form of gas bubbles.
Catalase is present in the cells to prevent oxidative damage. In plants, the enzyme plays crucial role in photorespiration. By breaking down the hydrogen peroxide, the enzyme protects the cells from oxygen radicals, that may damage the nucleic acid and other organelles.
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