WAEC Economics 2022 Question 9

Question 9

Elasticity

If the quantity demanded of a commodity increases from 20 units to 30 units when there is an increase in price from $4.00 to $5.00, the elasticity of demand is

  1. A.0.50
  2. B.0.65
  3. C.2.00
  4. D.2.50
Show the answer and explanation

Answer: C (2.00)

Explanation

Quantity rises 50% for a 25% price rise: 50 ÷ 25 = 2.00.