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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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