The formula for price elasticity of demand is:
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Correct Answer: Option D
Explanation:
Price elasticity of demand is calculated by dividing the percentage change in quantity demanded by the percentage change in price. The result shows how strongly consumers react to price changes. Economists usually focus on the numerical value rather than the negative sign attached to demand elasticity.
Price elasticity of demand is calculated by dividing the percentage change in quantity demanded by the percentage change in price. The result shows how strongly consumers react to price changes. Economists usually focus on the numerical value rather than the negative sign attached to demand elasticity.