Price (₦) Quantity Demanded
8 10
6 12
If we move from 8 to 6, the elasticity of demand is_______
  • A -1.25
  • B 0.62
  • C 0.8
  • D 1
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The correct answer is C. 0.8

The elasticity of demand is calculated as the percentage change in quantity divided by the percentage change in price. 

%Change in quantity = 12 - 10 = 2

Percentage change = \(\frac{2}{10}\) = 0.2

Change in price = 8 - 6 = 2

Percentage change = \(\frac{2}{8}\) = 0.25

Elasticity of demand = \(\frac{0.2}{0.25}\) = 0.8

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