WAEC Economics 2014 Objective — Question 35

Question 35 of 50 from the West African Examinations Council (WAEC) Economics 2014 Objective paper, with the correct answer and a full explanation.

An increase in the price of a commodity from $10 to $15 leads to an increase in the quantity supplied from 10 units to 15 units. The price elasticity of supply is

A. 0
B. 0.5
C. 1Correct
D. 5

Explanation

Price elasticity of supply = (%change in quantity)/(%change in price) = ((15−10)/10×100)/((15−10)/10×100) = 50/50 = 1.

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