When a kilogram of carrot is 8.00, 20 kilograms are demanded and when the price decreased to 6.000 per…

Analyze the question: We are given two price-quantity pairs and asked for the price elasticity of demand (PED). The price "#6.000" is most likely a typo for #6.00.

Concept: Price elasticity of demand is the percentage change in quantity demanded divided by the percentage change in price.

PED = (ΔQ / Q) ÷ (ΔP / P)

The ignored sign is the usual convention, so we take the absolute value.

Solution:

Data: P₁ = 8, Q₁ = 20, P₂ = 6, Q₂ = 30

• ΔQ = 30 − 20 = 10
• ΔP = 6 − 8 = −2

Using the original values as the base (the common JAMB approach):

• %ΔQ = 10/20 = 0.5
• %ΔP = −2/8 = −0.25

PED = 0.5 / 0.25 = 2

Check with the midpoint method:

• %ΔQ = 10/25 = 0.4
• %ΔP = 2/7 ≈ 0.2857
• PED = 1.4

The midpoint method gives 1.4, which is not among the options. The original-value method gives exactly 2, which matches option D. So the question intends the standard formula with the starting values as the base.

Since PED = 2 is greater than 1, demand is elastic. The percentage change in quantity is larger than the percentage change in price.

Tip: For JAMB, unless the question says "midpoint" or "arc" elasticity, use the original price and quantity as your base. Write it as:

PED = (ΔQ/Q₁) × (P₁/ΔP) = (10/20) × (8/2) = 2