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WAEC Agricultural Science 2009 Question 56

Question 56

Basic Agricultural Economics

Demand is said to be elastic when a percentage change in price

  1. A.results in an infinite change in demand
  2. B.results in an increase in quantity demanded
  3. C.results in an exact change in demand
  4. D.is less than one
Show the answer and explanation

Answer: B (results in an increase in quantity demanded)

Explanation

When demand is elastic, a price change causes a bigger change in quantity demanded (a fall in price raises demand a lot).