The demand schedule below shows the relationship between price and quantity demanded for a commodity. If the price falls from ₦8 to ₦6, the price elasticity of demand using the midpoint method is approximately Price (₦): 8, 6 Quantity Demanded: 20, 30

Using the midpoint method: % change in Qd = (30−20)/[(30+20)/2] × 100 = 10/25 × 100 = 40%. % change in Price = (6−8)/[(6+8)/2] × 100 = −2/7 × 100 ≈ −28.57%. PED = 40% ÷ 28.57% ≈ 1.40 (taking absolute value). This indicates elastic demand, meaning consumers are relatively responsive to the price change.