Gce Model Questions Vol1 2023 Economics Question 6

Practice objective / multiple choice question 6 from the 2023 Gce Model Questions Vol1 Economics examination.

Gce Model Questions Vol1 2023 Economics Objective / Multiple Choice Easy Difficulty
Question 6 GCE_MODEL_QUESTIONS_VOL1 • 2023 • ECONOMICS • objective

A good's price falls from \(\$12\) to \(\$9\) and the quantity demanded rises from 150 units to 210 units. Using the midpoint method, calculate the price elasticity of demand and state whether demand is elastic, inelastic or unit‑elastic.

Answer Options

A. Elasticity \\(\\approx -2.00\\) (elastic demand)
B. Elasticity \\(\\approx -0.85\\) (inelastic demand)
Correct Answer C. Elasticity \(\approx -1.17\) (elastic demand)
D. Elasticity \\(\\approx -1.00\\) (unit‑elastic demand)
Correct Answer
C
Correct Option:
Elasticity \(\approx -1.17\) (elastic demand)

About This Question

This is Gce Model Questions Vol1 2023 Economics Question 6. It is one of the objective questions from the 2023 Gce Model Questions Vol1 Economics examination.

Difficulty level: Easy .

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