Gce Model Questions Vol1 2018 Economics Question 38

Practice objective / multiple choice question 38 from the 2018 Gce Model Questions Vol1 Economics examination.

Gce Model Questions Vol1 2018 Economics Objective / Multiple Choice Easy Difficulty
Question 38 GCE_MODEL_QUESTIONS_VOL1 • 2018 • ECONOMICS • objective

The demand for a product is given by \(Q = 500 - 5P\), where \(P\) is price (in dollars) and \(Q\) quantity demanded. The price rises from \(P = 20\) to \(P = 22\). Using the midpoint (arc) formula, calculate the price elasticity of demand over this price change. Give your answer rounded to two decimal places.

Answer Options

A. -0.18
B. -0.33
Correct Answer C. -0.27
D. -0.22
Correct Answer
C
Correct Option:
-0.27

About This Question

This is Gce Model Questions Vol1 2018 Economics Question 38. It is one of the objective questions from the 2018 Gce Model Questions Vol1 Economics examination.

Difficulty level: Easy .

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