Neco 2020 Economics Question 15

Practice objective / multiple choice question 15 from the 2020 Neco Economics examination.

Neco 2020 Economics Objective / Multiple Choice Easy Difficulty
Question 15 NECO • 2020 • ECONOMICS • objective

The price of a good falls from \(\text{₦}500\) to \(\text{₦}400\) and the quantity demanded rises from 200 units to 260 units.\nUsing the midpoint (arc) method, calculate the price elasticity of demand. State whether demand is elastic, inelastic, or unit‑elastic.

Answer Options

Correct Answer A. Elasticity ≈ -1.17 (elastic demand)
B. Elasticity ≈ -1.50 (elastic demand)
C. Elasticity ≈ -1.00 (unit‑elastic demand)
D. Elasticity ≈ -0.83 (inelastic demand)
Correct Answer
A
Correct Option:
Elasticity ≈ -1.17 (elastic demand)

About This Question

This is Neco 2020 Economics Question 15. It is one of the objective questions from the 2020 Neco Economics examination.

Difficulty level: Easy .

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