Waec Model Questions Vol1 2019 Economics Question 5
Practice objective / multiple choice question 5 from the 2019 Waec Model Questions Vol1 Economics examination.
The demand for a product is given by the linear equation Q = 120 - 0.5P, where Q is quantity demanded (in thousands of units) and P is price (in Naira per unit). Currently the price is ₦80. The government imposes a specific tax of ₦20 per unit, raising the price to ₦100. Compute the price elasticity of demand at the original price and state whether total revenue will increase or decrease after the tax.
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About This Question
This is Waec Model Questions Vol1 2019 Economics Question 5. It is one of the objective questions from the 2019 Waec Model Questions Vol1 Economics examination.
Difficulty level: Medium .
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