Economics · Oct / Nov 2018 · Paper 12 · Question 7
2281Price elasticity of demand (PED)
The table shows the demand and supply for spices in a market in Africa. | price per kg (US$) | quantity demanded (kg) | quantity supplied (kg) | |---|---|---| | 10 | 50 | 10 | | 20 | 40 | 20 | | 30 | 30 | 30 | | 40 | 20 | 40 | When the price rises from US$20 to US$30 per kg, what is the price elasticity of demand (PED) for spices?
- A0.25
- B0.5
- C1.0
- D2.0
As printed in the paper
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Correct answer: B. 0.5
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