Neco 2018 Economics Question 41

Practice objective / multiple choice question 41 from the 2018 Neco Economics examination.

Neco 2018 Economics Objective / Multiple Choice Easy Difficulty
Question 41 NECO • 2018 • ECONOMICS • objective

If \( \frac{\Delta Q}{Q}= -0.15 \) and \( \frac{\Delta P}{P}=0.10 \), compute the price elasticity of demand \(E_d\) and state whether demand is elastic, unit‑elastic or inelastic.

Answer Options

A. Inelastic demand (|E_d| = 1.5 < 1)
Correct Answer B. Elastic demand (|E_d| = 1.5 > 1)
C. Elastic demand (|E_d| = 0.85 > 1)
D. Unit‑elastic demand (|E_d| = 1.0)
Correct Answer
B
Correct Option:
Elastic demand (|E_d| = 1.5 > 1)

About This Question

This is Neco 2018 Economics Question 41. It is one of the objective questions from the 2018 Neco Economics examination.

Difficulty level: Easy .

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