WAEC Economics 2023 Paper

Concept:Price elasticity of demand measures how quantity demanded reacts to a change in price.Explanation:When price rises but quantity demanded stays the same, demand does not respond to price.The percentage change in quantity demanded is zero.Elasticity of demand $= \frac{\% \text{ change in quantity demanded}}{\% \text{ change in price}} = \frac{0}{\text{positive number}} = 0$.An elasticity value of $0$ is called perfectly price inelastic.Such goods are essentials like life-saving drugs, salt, or basic food items.Answer:A. perfectly price inelastic