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WAEC Agricultural Science 2016 Question 46

Question 46

Basic Agricultural Economics

Determine the price elasticity of demand if the price of yam tuber rises by 10% (0.1) and the quantity demanded falls by 5% (0.05).

  1. A.0.5
  2. B.0.4
  3. C.0.3
  4. D.0.1
Show the answer and explanation

Answer: A (0.5)

Explanation

Elasticity = % change in quantity ÷ % change in price = 5 ÷ 10 = 0.5.