WAEC Economics 2021 Objective — Question 11
Question 11 of 50 from the West African Examinations Council (WAEC) Economics 2021 Objective paper, with the correct answer and a full explanation.
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11. The price of soap rose from $10 to $20, causing a trader to increase supply from 50 to 120 boxes per week. This makes supply
- A. unitary elastic.
- B. perfectly inelastic.
- C. fairly elastic.Correct
- D. inelastic.
Explanation
Price elasticity of supply = (%Δquantity)/(%Δprice) = 140%/100% = 1.4, which is greater than 1 (elastic) but not extreme — described as fairly elastic.
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