If the quantity demanded of a commodity increases from 20 units to 30 units when there is an increase in price from $4.00 to $5.00, the elasticity of demand is

If the quantity demanded of a commodity increases from 20 units to 30 units when there is an increase in price from $4.00 to $5.00, the elasticity of demand is

A 0.50
B 0.65
C 2.00
D 2.50

jamb 2022 english-language

The correct answer is C. 2.00

e = âQd/âP x P/Qd

= 30 - 20/ 5 - 4 x 4/ 20

= 10/1 x 4/20

= 2

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