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WAEC Economics 2015 Question 12

Question 12

Elasticity

If a given change in price brings about a proportionately larger change in quantity demanded, then

  1. A.demand is relatively price elastic.
  2. B.demand is relatively price inelastic.
  3. C.price elasticity of demand is unitary.
  4. D.price elasticity of demand is constant.
Show the answer and explanation

Answer: A (demand is relatively price elastic.)

Explanation

A proportionately larger response of quantity means elasticity greater than 1.