WAEC Economics 2020 Objective — Question 14
Question 14 of 50 from the West African Examinations Council (WAEC) Economics 2020 Objective paper, with the correct answer and a full explanation.
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A seller increased the quantity he offered for sale from 200 units to 250 units when price of his product increased by 12.5%. What is the price elasticity of supply of his product?
- A. 2.00
- B. 1.50Correct
- C. 1.00
- D. 0.50
Explanation
Percentage change in quantity supplied = (250-200)/200 x100 = 25%. Price elasticity of supply = %change in quantity / %change in price = 25% / 12.5% = 1.50.
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