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WAEC Economics 2014 Question 20

Question 20

Elasticity

If the coefficient of price elasticity of demand is 0.1, demand is

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

Answer: B (inelastic.)

Explanation

A coefficient between 0 and 1 means demand is inelastic.