Use the table below to answer question 17 and 18.
Market Demand Schedule for Commodity X. \(\begin{array}{c|c}
\text{ Price N} & \text{Quantity(Million units)} \\ 60 & 100 \\
50 & 140 \\
40 & 220 \\
30 & 260 \\
20 & 300 \\
10 & 340 \\
\end{array}\)
If the price of commodity X falls from N40.00 to N30.00 what is the price elasticity of demand?
The price elasticity of demand is calculated as the percentage change in quantity divided by the percentage change in price.
Change in quantity demanded = 260 - 220 = 40
percentage change = \(\frac{40}{260}\) = 0.154
Change in price = 40 - 30 = 10
percentage change = \(\frac{10}{40}\) = 0.25
price elasticity = \(\frac{0.154}{0.25}\) = 0.616 approximately 0.62
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