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WAEC Economics 2022 Paper

Question : 5

Total: 52

4.00 \text{ to }

5.00, the elasticity of demand is

Solution:

Concept:

Price elasticity of demand shows how much quantity demanded changes when price changes.

Explanation:

Use the formula:

E_d = \frac{\Delta Q}{\Delta P} \times \frac{P}{Q}

Here,

\Delta Q = 30 - 20 = 10

units.

\Delta P = 5 - 4 = 1

naira (or dollar).

Original price

P = 4

and original quantity

Q = 20

Substitute the values:

E_d = \frac{10}{1} \times \frac{4}{20}

This simplifies to

E_d = 10 \times 0.2 = 2

Therefore, the elasticity of demand is

2.00

Answer:

A. 2.00

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