If a 10% rise in price causes a 5% decrease in the quantity demanded of a commodity; the elasticity of demand is?

By: |Published on: Oct 21|Categories: Economics JAMB| 0 comments

A. unitary elastic
B. zero elastic
C. elastic
D. inelastic

Correct Answer:

Option C = elastic

Explanation

Elasticity of demand refers to how sensitive the demand for a good is to changes as prices and consumer income changes.

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