JAMB Economics 2020 Objective — Question 9
Question 9 of 50 from the Joint Admissions and Matriculation Board (JAMB) Economics 2020 Objective paper, with the correct answer and a full explanation.
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If the price of a bicycle changes from N120 to N80, and the quantity bought changes from 300 to 500 units, the elasticity of demand for bicycle is
- A. 66.7
- B. 0.5
- C. 1.5
- D. 2.0Correct
Explanation
Elasticity = % change in quantity / % change in price = 66.67% / 33.33% = 2.0.
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