JAMB Economics 2008 Objective — Question 10

Question 10 of 50 from the Joint Admissions and Matriculation Board (JAMB) Economics 2008 Objective paper, with the correct answer and a full explanation.

If the demand elasticity coefficient of cars is 0.5, it implies that the demand for petrol is

A. elastic
B. perfectly inelastic
C. inelasticCorrect
D. perfectly elastic

Explanation

Demand elasticity of car is 0.5, is inelastic and petrol is a complement. Demand for the complement too is likely to be inelastic.

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