Post Utme Eksu 2025 Economics Question 16

Practice objective / multiple choice question 16 from the 2025 Post Utme Eksu Economics examination.

Post Utme Eksu 2025 Economics Objective / Multiple Choice
Question 16 POST_UTME_EKSU • 2025 • ECONOMICS • objective

An increase in the price of a commodity will lead to a decrease in its demand, but the magnitude of the decrease dep\ends on the price elasticity of demand. If the price elasticity of demand is greater than 1, the decrease in demand will be greater than the percentage increase in price. Which of the following statements is correct?

Answer Options

A. The price elasticity of demand is greater than 1 when the percentage increase in price is greater than the percentage decrease in demand.
Correct Answer B. The price elasticity of demand is greater than 1 when the percentage increase in price is less than the percentage decrease in demand.
C. The price elasticity of demand is greater than 1 when the percentage increase in price is equal to the percentage decrease in demand.
D. The price elasticity of demand is greater than 1 when the percentage increase in price is greater than the percentage increase in demand.
Correct Answer
B
Correct Option:
The price elasticity of demand is greater than 1 when the percentage increase in price is less than the percentage decrease in demand.

About This Question

This is Post Utme Eksu 2025 Economics Question 16. It is one of the objective questions from the 2025 Post Utme Eksu Economics examination.

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