Post Utme Rhema University 2021 Economics Question 16

Practice objective / multiple choice question 16 from the 2021 Post Utme Rhema University Economics examination.

Post Utme Rhema University 2021 Economics Objective / Multiple Choice
Question 16 POST_UTME_RHEMA_UNIVERSITY • 2021 • 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

A. The price and quantity demanded are positively related.
Correct Answer B. The price and quantity demanded are negatively related.
C. The price and quantity demanded are unrelated.
D. The price and quantity demanded are inversely related.
Correct Answer
B
Correct Option:
The price and quantity demanded are negatively related.

About This Question

This is Post Utme Rhema University 2021 Economics Question 16. It is one of the objective questions from the 2021 Post Utme Rhema University Economics examination.

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