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When a kilogram of carrot is #8.00, 20 kilograms are demanded and when the price...

Economics
JAMB 2023

When a kilogram of carrot is #8.00, 20 kilograms are demanded and when the price decreased to #6.000 per kilogram, 30 kilograms are demanded. The elasticity of demand equals to

  • A. 11
  • B. 12
  • C. \(\frac{1}{2}\)
  • D. 2
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Correct Answer: Option D
Explanation

e = \(\frac{∆Q}{∆P}\times\frac{p}{q}\)



where ∆Q = Q2 - Q1 and ∆P = P2 - P1
 

e = \(\frac{30 - 20}{6 - 8}\times\frac{8}{20}\)



= -2 since price elasticity of demand is always positive, then e = 2


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Project Topics and Materials, Post-UTME past questions - Download now or upload yours to get paid
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