Post Utme Lautech 2020 Economics Question 31

Practice objective / multiple choice question 31 from the 2020 Post Utme Lautech Economics examination.

Post Utme Lautech 2020 Economics Objective / Multiple Choice
Question 31 POST_UTME_LAUTECH • 2020 • ECONOMICS • objective

The demand for a commodity is said to be elastic if the percentage change in the quantity demanded is greater than the percentage change in the price. What is the formula for calculating the price elasticity of demand?

Answer Options

Correct Answer A. Ed = \frac{\%\,\text{change in quantity demanded}}{\%\,\text{change in price}}
B. Ed = \frac{\%\,\text{change in price}}{\%\,\text{change in quantity demanded}}
C. Ed = \frac{\text{change in quantity demanded}}{\text{change in price}}
D. Ed = \frac{\text{change in price}}{\text{change in quantity demanded}}
Correct Answer
A
Correct Option:
Ed = \frac{\%\,\text{change in quantity demanded}}{\%\,\text{change in price}}

About This Question

This is Post Utme Lautech 2020 Economics Question 31. It is one of the objective questions from the 2020 Post Utme Lautech Economics examination.

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