If the price of a ball point pen falls from N1.00 to N0.60 and the...

ECONOMICSJAMB 2018

If the price of a ball point pen falls from N1.00 to N0.60 and the quantity demanded increases. from 200 to 300, the point elasticity of demand is equal to____________

  • A. 0.50
  • B. 0.40
  • C. 1.25
  • D. 0.80

Correct Answer: C. 1.25

Explanation

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TEENPRENUER
TEENPRENUER
Thursday, April 14th, 2022 13:48pm

300-200/200multiply by 100=50

0.60-1/1 multiply by 100=40

%change in QD/%change in P

50/40=1.25

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