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WAEC Economics 2005 Question 20

Question 20

Elasticity

If elasticity of demand for a commodity is less than one, demand is

  1. A.unitary elastic
  2. B.inelastic
  3. C.infinitely elastic
  4. D.zero elastic.
Show the answer and explanation

Answer: B (inelastic)

Explanation

PED below 1 means quantity changes proportionately less than price: inelastic demand.