If the co-efficient of elasticity of demand is 1.5, then the demand is
ECONOMICS
WAEC 2008
If the co-efficient of elasticity of demand is 1.5, then the demand is
- A. fairly inelastic
- B. perfectly elastic
- C. elastic
- D. inelastic
Correct Answer: C. elastic
Explanation
A 1.5 co-efficient of elasticity of demand means that the demand is elastic. This means that a small change in price leads to a large change in quantity demanded. Meaning the product is elastic (or sensitive to price changes).
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