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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