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NECO Economics 2024 Objective — Question 7

Question 7 of 50 from the National Examinations Council (NECO) Economics 2024 Objective paper, with the correct answer and a full explanation.

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Price elasticity of demand is the responsiveness of quantity demanded to a change in

  • A. A. demand for the product
  • B. B. price of another product
  • C. C. income of the buyer
  • D. D. price of the productCorrect

Explanation

The price elasticity of demand (PED) is the degree or extent of responsiveness of demand to a change in the price of a commodity. PED = %Δ in Qd / %Δ in P

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