passwella.
Menu

JAMB Economics 2011 Question 12

Question 12

Elasticity

Use the table below to answer the question.
Price(₦) | Qty. / (bags)
1 | 60
2 | 120
From the table above, the price elasticity of supply is

  1. A.4
  2. B.25
  3. C.1
  4. D.2.
Show the answer and explanation

Answer: C (1)

Explanation

% change in quantity = 60/60 × 100 = 100%; % change in price = 1/1 × 100 = 100%. Elasticity = 100/100 = 1.