Post Utme Summit University 2020 Economics Question 11

Practice objective / multiple choice question 11 from the 2020 Post Utme Summit University Economics examination.

Post Utme Summit University 2020 Economics Objective / Multiple Choice
Question 11 POST_UTME_SUMMIT_UNIVERSITY • 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. E = \frac{\%\ \Delta Q}{\%\ \Delta P}
B. E = \frac{\%\ \Delta P}{\%\ \Delta Q}
C. E = \frac{\%\ \Delta Q + \%\ \Delta P}{2}
D. E = \frac{\%\ \Delta Q - \%\ \Delta P}{2}
Correct Answer
A
Correct Option:
E = \frac{\%\ \Delta Q}{\%\ \Delta P}

About This Question

This is Post Utme Summit University 2020 Economics Question 11. It is one of the objective questions from the 2020 Post Utme Summit University Economics examination.

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