Post Utme Abu 2017 Economics Question 11

Practice objective / multiple choice question 11 from the 2017 Post Utme Abu Economics examination.

Post Utme Abu 2017 Economics Objective / Multiple Choice
Question 11 POST_UTME_ABU • 2017 • ECONOMICS • objective

The elasticity of demand for a commodity is given by the formula \( eta = \frac{p}{x} \frac{dx}{dp} \). If the demand for a commodity is elastic, what can be concluded about the relationship between the price and quantity demanded?

Answer Options

Correct Answer A. The price and quantity demanded are inversely related.
B. The price and quantity demanded are directly related.
C. The price and quantity demanded are unrelated.
D. The price and quantity demanded have an ambiguous relationship.
Correct Answer
A
Correct Option:
The price and quantity demanded are inversely related.

About This Question

This is Post Utme Abu 2017 Economics Question 11. It is one of the objective questions from the 2017 Post Utme Abu Economics examination.

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