passwella.
Menu

WAEC Agricultural Science 2018 Question 48

Question 48

Basic Agricultural Economics

Use the demand schedule below.
Price (N) 12 — Quantity Demanded 200 kg
Price (N) 8 — Quantity Demanded 240 kg
What is the price elasticity of demand of the commodity?

  1. A.0.3
  2. B.0.4
  3. C.0.5
  4. D.0.6
Show the answer and explanation

Answer: D (0.6)

Explanation

Elasticity = % change in quantity ÷ % change in price = 20 ÷ 33.33 = 0.6.