Gce Model Questions Vol1 2024 Economics Question 36

Practice objective / multiple choice question 36 from the 2024 Gce Model Questions Vol1 Economics examination.

Gce Model Questions Vol1 2024 Economics Objective / Multiple Choice Easy Difficulty
Question 36 GCE_MODEL_QUESTIONS_VOL1 • 2024 • ECONOMICS • objective

The price of a good rises from \(100\) to \(120\) and the quantity demanded falls from 500 units to 425 units. Calculate the price elasticity of demand and state whether demand is elastic, inelastic or unit‑elastic.

Answer Options

Correct Answer A. Inelastic (elasticity = -0.75)
B. Elastic (elasticity = -1.20)
C. Unit‑elastic (elasticity = -1.00)
D. Inelastic (elasticity = -0.60)
Correct Answer
A
Correct Option:
Inelastic (elasticity = -0.75)

About This Question

This is Gce Model Questions Vol1 2024 Economics Question 36. It is one of the objective questions from the 2024 Gce Model Questions Vol1 Economics examination.

Difficulty level: Easy .

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