WAEC SSCE - Economics - 1999 (Objective)

Question 1 Report

The price elasticity of coefficient indicates

how far business can reduce cost

the degree of competition

the extent to which curve shifts

consumer responsiveness to price changes

none of the above

Answer Details

The price elasticity of coefficient indicates the consumer responsiveness to price changes. In other words, it measures the percentage change in quantity demanded of a product due to a percentage change in its price. A higher elasticity value means that consumers are more sensitive to price changes and will decrease their quantity demanded more in response to a price increase, while a lower elasticity value means that consumers are less sensitive to price changes and will only slightly decrease their quantity demanded in response to a price increase.






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