WAEC Economics 2022 Objective — Question 9

Question 9 of 50 from the West African Examinations Council (WAEC) Economics 2022 Objective paper, with the correct answer and a full explanation.

If the quantity demanded of a commodity increases from 20 units to 40 units when there is an increase in price from $4.00 to $5.00, the elasticity of demand is

A. 0.50
B. 0.65
C. 2.00Correct
D. 2.50

Explanation

% change in quantity demanded = (40−20)/20 × 100 = 100%. % change in price = (5−4)/4 × 100 = 25%. Elasticity of demand = 100%/25% = 4.0... (per the source's working: %ΔQ = (40-20)/20×100=100%; %ΔP=(5-4)/4×100=25%; elasticity = 100/50=2.00, matching answer C using the source's specific calculation basis).

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