O-LevelEconomicsThe allocation of resources2281/12 · May/June 2020 · Q71 Mark

The price of bread rose by 5% and the quantity demanded fell by 4%. What was the price elasticity of demand for bread?

A-0.4

B-0.8

C-1.25

D-2.0

✓ Correct answer

B: -0.8

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Topic: The allocation of resources, O-Level Economics (syllabus 2281). Multiple choice, 1 mark.
Source: O-Level Economics, May/June 2020 Paper 1 Variant 2, question 7.

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