Neco 2021 Economics Question 39

Practice objective / multiple choice question 39 from the 2021 Neco Economics examination.

Neco 2021 Economics Objective / Multiple Choice Easy Difficulty
Question 39 NECO • 2021 • ECONOMICS • objective

Using the midpoint method, calculate the price elasticity of demand when the price of a product falls from \(\text{₦}200\) to \(\text{₦}150\) and the quantity demanded rises from 500 units to 800 units. State whether demand is elastic, inelastic or unitary.

Answer Options

A. Elasticity \(\approx -1.00\); demand is unitary.
B. Elasticity \(\approx -2.30\); demand is inelastic.
C. Elasticity \(\approx -0.75\); demand is inelastic.
Correct Answer D. Elasticity \(\approx -1.62\); demand is elastic.
Correct Answer
D
Correct Option:
Elasticity \(\approx -1.62\); demand is elastic.

About This Question

This is Neco 2021 Economics Question 39. It is one of the objective questions from the 2021 Neco Economics examination.

Difficulty level: Easy .

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