If the price of a ball point pen falls from N1.00 to N0.60 and the...
ECONOMICS
JAMB 2018
If the price of a ball point pen falls from N1.00 to N0.60 and the quantity demanded increases. from 200 to 300, the point elasticity of demand is equal to____________
- A. 0.50
- B. 0.40
- C. 1.25
- D. 0.80
Correct Answer: C. 1.25
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300-200/200multiply by 100=50
0.60-1/1 multiply by 100=40
%change in QD/%change in P
50/40=1.25