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