Question on: JAMB Economics - 2014
A
0.50
B
0.80
C
2.00
D
1.25
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Correct Option: B
To calculate the price elasticity of supply, we use the following formula:
Price Elasticity of Supply (PES) = (% Change in Quantity Supplied) / (% Change in Price)
From the table:
- Initial Price (P1) = ₦20
- Initial Quantity Supplied (Q1) = 10 units
- New Price (P2) = ₦30
- New Quantity Supplied (Q2) = 15 units
- Calculate the percentage change in quantity supplied: % Change in Quantity = [(Q2 - Q1) / Q1] * 100 % Change in Quantity = [(15 - 10) / 10] * 100 % Change in Quantity = (5
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