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JAMB Economics 1989 Question 9

Question 9

Elasticity

If at 10k per kg, 1000kg of yam were purchased and at 5k per kg, 1,500kg were purchased, the resultant point elasticity of demand is

  1. A.0.33
  2. B.0.0001
  3. C.1
  4. D.10,000.
Show the answer and explanation

Answer: C (1)

Explanation

Quantity changes by 500/1000 = 50%; price changes by 5/10 = 50%. Elasticity = 50 ÷ 50 = 1.