Gce Model Questions Vol1 2022 Economics Question 21

Practice objective / multiple choice question 21 from the 2022 Gce Model Questions Vol1 Economics examination.

Gce Model Questions Vol1 2022 Economics Objective / Multiple Choice Easy Difficulty
Question 21 GCE_MODEL_QUESTIONS_VOL1 • 2022 • ECONOMICS • objective

The price of a good rises from \(\$10\) to \(\$12\) and its quantity demanded falls from 200 units to 150 units. Using the midpoint method, calculate the price elasticity of demand and state whether demand is elastic, inelastic or unit‑elastic.

Answer Options

A. -1.00 (unit‑elastic)
B. -2.34 (elastic)
C. -0.83 (inelastic)
Correct Answer D. -1.57 (elastic)
Correct Answer
D
Correct Option:
-1.57 (elastic)

About This Question

This is Gce Model Questions Vol1 2022 Economics Question 21. It is one of the objective questions from the 2022 Gce Model Questions Vol1 Economics examination.

Difficulty level: Easy .

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