Elasticity
GCE Economics

a) Define price elasticity of demand. (2 marks) b) State and explain FOUR factors that determine the price elasticity of demand for a commodity. (8 marks) c) If the price of a commodity falls from ₦50…

a) Distinguish between income elasticity of demand and cross elasticity of demand. (4 marks) b) Explain how cross elasticity of demand can be used to determine the relationship between two commodities…

A 10% rise in the price of commodity X leads to a 15% increase in the quantity demanded of commodity Y. This indicates that X and Y are

When a firm's total revenue increases as price falls, the price elasticity of demand for the product is

The supply of a commodity is said to be perfectly elastic when

Which of the following goods is most likely to have a perfectly inelastic demand?

A trader sells 500 bags of rice per month at ₦15,000 per bag. When the price rises to ₦18,000, monthly sales fall to 350 bags. The price elasticity of demand is approximately

Which of the following factors would make the demand for a commodity more price inelastic?

A manufacturer discovers that raising the price of his product from ₦500 to ₦600 leaves total revenue unchanged. The price elasticity of demand over this range is

If the income elasticity of demand for a commodity is -0.6, the commodity is classified as

If the price of a commodity rises from ₦200 to ₦250 and the quantity demanded falls from 100 units to 80 units, the price elasticity of demand is