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JAMB Economics 1978 Question 50

Question 50

Elasticity

The numerical measure of elasticity is:

  1. A.% change in Q / % change in P
  2. B.change in Q / change in P
  3. C.% change in P / % change in Q
  4. D.change in P / change in Q
  5. E.change in P plus change in Q / change in P
Show the answer and explanation

Answer: A (% change in Q / % change in P)

Explanation

Price elasticity of demand = percentage change in quantity demanded ÷ percentage change in price.