If the price of an item increases by 8% while the quantity demanded falls from
ECONOMICS
JAMB 2012
If the price of an item increases by 8% while the quantity demanded falls from 1500 units to 1492 units, the demand is said to be
- A. perfectly elastic
- B. inelastic
- C. elastic
- D. perfectly inelastic
Correct Answer: C. elastic
Explanation
Elastic demand is a situation where a change in prices leads to a change in the quantity demanded.
Post an Explanation Or Report an Error
If you see any wrong question or answer, please leave a comment below and we'll take a look. If you doubt why the selected answer is correct or need additional more details? Please drop a comment or Contact us directly. Your email address will not be published. Required fields are marked *