JAMB - Economics (2016 - No. 26)
If price of yams decreases from N15.00 per tuber to N13.50 and the quantity supplied decreases by 20%. What is the elasticity of supply?
2.00
0.50
1.50
1.00
Explanation
percentage change in price divided by % change in quantity supply 15.00-13.50=1.5
1.5 ÷13.50 x (100)
=11.11% ÷ 20%= 0.1111 ÷ 0.2
0.55555..
=0.5ans
1.5 ÷13.50 x (100)
=11.11% ÷ 20%= 0.1111 ÷ 0.2
0.55555..
=0.5ans
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