passwella.
Menu

WAEC Economics 2013 Question 45

Question 45

Elasticity

Which of the following can be used to calculate the price elasticity of demand?

  1. A.(percentage change in quantity demanded)/(percentage change in price.)
  2. B.(percentage change in price)/(percentage change in the quantity demanded.)
  3. C.(percentage change in the quantity demanded)/(percentage change in income.)
  4. D.(percentage change in income.)/(percentage change in the quantity demanded.)
Show the answer and explanation

Answer: A ((percentage change in quantity demanded)/(percentage change in price.))

Explanation

Price elasticity of demand = % change in quantity demanded ÷ % change in price.