Waec Model Questions Vol1 2017 Economics Question 3

Practice essay / theory question 3 from the 2017 Waec Model Questions Vol1 Economics examination. This question covers Elasticity .

Waec Model Questions Vol1 2017 Economics Essay / Theory

Topic: Elasticity

Question 3 WAEC_MODEL_QUESTIONS_VOL1 • 2017 • ECONOMICS • essay

The table below shows the quantity demanded of a commodity at various prices. | Price (₦) | Quantity demanded (units) | |-----------|---------------------------| | 200 | 500 | | 150 | 650 | | 100 | 900 | Using the information provided, answer the following questions.

Question Parts

( a )

Calculate the price elasticity of demand between the price of ₦200 and ₦150 using the midpoint (arc) method.

( b )

Interpret the elasticity coefficient obtained in part (a) and explain what it implies for the consumer’s responsiveness to price changes.

( c )

Assuming the price falls from ₦200 to ₦150, determine whether total revenue will increase, decrease or remain unchanged, and justify your answer using the concept of elasticity.

( d )

Discuss two factors that could cause the price elasticity of demand for this commodity to be higher (more elastic) than the value you calculated.

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About This Question

This is Waec Model Questions Vol1 2017 Economics Question 3. It is one of the essay questions from the 2017 Waec Model Questions Vol1 Economics examination.

The question covers Elasticity .

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