Neco 2022 Economics Question 4

Practice objective / multiple choice question 4 from the 2022 Neco Economics examination.

Neco 2022 Economics Objective / Multiple Choice Medium Difficulty
Question 4 NECO • 2022 • ECONOMICS • objective

The linear demand curve passes through the points \( (P=200, Q=100) \) and \( (P=150, Q=150) \). Using the midpoint method, calculate the price elasticity of demand at the price \( P=175 \). State whether demand is elastic, inelastic or unit‑elastic at that point.

Answer Options

Correct Answer A. Elasticity = -1.4 (elastic)
B. Elasticity = -1.0 (unit‑elastic)
C. Elasticity = -0.6 (inelastic)
D. Elasticity = -2.0 (elastic)
Correct Answer
A
Correct Option:
Elasticity = -1.4 (elastic)

About This Question

This is Neco 2022 Economics Question 4. It is one of the objective questions from the 2022 Neco Economics examination.

Difficulty level: Medium .

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