Economics
WAEC 2008
If the co-efficient of elasticity of demand is 1.5, then the demand is
-
A.
fairly inelastic
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B.
perfectly elastic
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C.
elastic
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D.
inelastic
Correct Answer: Option C
Explanation
A 1.5 co-efficient of elasticity of demand means that the demand is elastic. This means that a small change in price leads to a large change in quantity demanded. Meaning the product is elastic (or sensitive to price changes).
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