WAEC - Economics (2008 - No. 11)

If the co-efficient of elasticity of demand is 1.5, then the demand is
fairly inelastic
perfectly elastic
elastic
inelastic

Explanation

A 1.5 co-efficient of elasticity of demand means that the demand is elastic. This means that a small change in price leads to a large change in quantity demanded. Meaning the product is elastic (or sensitive to price changes).

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