passwella.
Menu

WAEC Economics 2012 Question 4

Question 4

Elasticity

If a 6% decrease in price results in more than 6% decrease in quantity supplied, supply can be regarded as

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

Answer: A (elastic.)

Explanation

Quantity changes by a larger percentage than price, so the coefficient is above 1: elastic.