O-LevelEconomicsThe allocation of resources2281/11 · Oct/Nov 2010 · Q81 Mark

The table illustrates the demand and supply for rice in a market in Africa. price per kg ($) quantity demanded (kg) quantity supplied (kg) 10 50 10 20 40 20 30 30 30 40 20 40 When the price rises from $20 to $30 per kg, what is the approximate price elasticity of demand for rice?

A0.25

B0.5

C1.0

D2.0

✓ Correct answer

B: 0.5

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Topic: The allocation of resources, O-Level Economics (syllabus 2281). Multiple choice, 1 mark.
Source: O-Level Economics, Oct/Nov 2010 Paper 1 Variant 1, question 8.

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