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Economics · Theory of demand

EconomicsTheory of demandJAMB

The price of a good rises from ₦10 to ₦12 and quantity demanded falls from 100 to 80 units. The price elasticity of demand is

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Answer: A. 1 (unitary)

%ΔQ = 20/100 = 20%; %ΔP = 2/10 = 20%; elasticity = 20 ÷ 20 = 1.

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