NABTEB Economics 2024 Objective — Question 14
Question 14 of 50 from the National Business and Technical Examinations Board (NABTEB) Economics 2024 Objective paper, with the correct answer and a full explanation.
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If the coefficient of price elasticity of supply of a commodity is 0.8, then
- A. A. supply is perfectly elastic
- B. B. supply is fairly inelasticCorrect
- C. C. supply is perfectly inelastic
- D. D. supply is fairly elastic
Explanation
Elasticity of demand and supply is said to be fairly elastic when it is greater than one but less than infinity and it is said to be fairly inelastic when it is greater than zero but less than one or unity.
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