Economics WAEC

The effect of an increase in price on the demand for a commodity with elastic demand will be?

A. an increase in the demand for the commodity
B. a decrease in the demand for the commodity
C. a further increase in the price of the commodity
D. reduction in the number of distributors of the commodity
E. a general increase in the cost of the production

Correct Answer:

Option B – a decrease in the demand for the commodity

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