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JAMB Economics 2019 Paper

Question : 3

Total: 80

Solution:

The elasticity of demand is calculated as the percentage change in quantity divided by the percentage change in price.

%Change in quantity = 12 - 10 = 2

Percentage change =

\frac{2}{10}

= 0.2

Change in price = 8 - 6 = 2

Percentage change =

\frac{2}{8}

= 0.25

Elasticity of demand = $\frac{0.2}{0.25}$ = 0.8

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