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JAMB Economics 2022 Objective — Question 26

Question 26 of 40 from the Joint Admissions and Matriculation Board (JAMB) Economics 2022 Objective paper, with the correct answer and a full explanation.

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26. When demand is elastic, consumers

  • A. (A) react more proportionately to price changeCorrect
  • B. (B) are not sensitive to price change
  • C. (C) react equally to price change
  • D. (D) react less proportionately to price change

Explanation

Price elasticity of demand is the degree of responsiveness of consumers to changes in price. If demand is elastic, consumers respond in a higher proportion than the change in percentage price.

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