JAMB Economics 2021 Objective — Question 34
Question 34 of 40 from the Joint Admissions and Matriculation Board (JAMB) Economics 2021 Objective paper, with the correct answer and a full explanation.
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34. Given D = -5 + 0.7P, use the information to answer questions 34 and 35. What type of goods has that demand function a. Elastic b. Inelastic c. Fairly inelastic d. Perfectly inelastic
- A. Elastic
- B. Inelastic
- C. Fairly inelasticCorrect
- D. Perfectly inelastic
Explanation
Since the price coefficient (0.7) is less than one, the quantity demanded responds less than proportionately to price changes, meaning the good is fairly price inelastic.
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