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

% change in Qd = (350 - 500)/500 × 100 = -30%. % change in P = (18,000 - 15,000)/15,000 × 100 = 20%. PED = 30/20 = 1.50. Since PED > 1, demand is elastic, meaning consumers are relatively sensitive to the price change. Distractor A (1.25) and C (1.75) reflect common arithmetic errors in computing percentage changes.