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JAMB Economics 2005 Question 36

Question 36

Elasticity

If elasticity of demand is greater than 1 and less than infinity, demand is said to be

  1. A.elastic
  2. B.perfectly inelastic
  3. C.inelastic
  4. D.perfectly elastic
Show the answer and explanation

Answer: A (elastic)

Explanation

Elasticity above 1 means demand is elastic; it is perfectly elastic only when elasticity is infinite.