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If a 10k per kg, 1000kg of yam were purchased and at 5k per kg, 1,500kg were pur...


Question

If a 10k per kg, 1000kg of yam were purchased and at 5k per kg, 1,500kg were purchased, the resultant point elasticity of demand is?

Options

A) 0.33

B) 0.0001

C) 1

D) 10,000

The correct answer is C.

Explanation:

The elasticity of demand is 1 because a slight change in price led to an increase in quantity demand. Therefore, it is called UNITARY elasticity of demand which is equals to 1.

Explanation provided by Okpede Naomi Ereremena


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Discussion (2)

  • Okpede Naomi Ereremena

    The elasticity of demand is 1 because a slight change in price led to an increase in quantity demand. Therefore, it is called UNITARY elasticity of demand which is equals to 1.

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  • Elasticity of demand is the degree of responsiveness of demand to little change in the price of a commodity