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JAMB Economics 2009 Question 9

Question 9

Elasticity

Price elasticity of demand is expressed as

  1. A.(Percentage change in price)/(percentage change in quantity demanded)
  2. B.(Percentage change in quantity demanded)/(percentage change in income)
  3. C.(Percentage change in income)/(percentage change in quantity demanded)
  4. D.(Percentage change in quantity demanded)/(percentage change in price)
Show the answer and explanation

Answer: D ((Percentage change in quantity demanded)/(percentage change in price))

Explanation

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