If the price of a bicycle changes from N120 to N80 and quantity bought changes...
ECONOMICS
JAMB 2013
If the price of a bicycle changes from N120 to N80 and quantity bought changes from 300 to 500 units, the elasticity of demand for bicycle is
- A. 66.7
- B. 0.5
- C. 1.5
- D. 0.2
Correct Answer: D. 0.2
Explanation
change in price = 120- 80 = 40 change in quantity = 500 - 300 = 200 % change = 40/100 = 0.4 200/100 = 2 0.4/2 = 0.2
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