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UI Post-UTME Economics 2017 (Model questions) Question 13

Question 13

Elasticity

Price (₦): 1, 2; Qty (bags): 60, 120. From the table above, the price elasticity of supply is

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

Answer: B (1)

Explanation

Quantity rises by 100% (60 to 120) and price by 100% (₦1 to ₦2), so PES = 1.