JAMB Agricultural Science 2013 Paper

Concept:Elastic demand refers to the responsiveness of quantity demanded to a change in price, measured by the price elasticity of demand.Explanation:The price elasticity of demand is defined as:$$E_d = \frac{\% \Delta Q_d}{\% \Delta P}$$When demand is elastic, a small percentage change in price causes a larger percentage change in quantity demanded.So, mathematically, for elastic demand: $E_d > 1$.This means a change in price brings about a greater change in the quantity of goods demanded.Option B describes inelastic demand.Option C describes unitary elastic demand.Option D describes perfectly inelastic demand.Answer:A. brings about greater change in quantity of goods demanded.