Waec Model Questions Vol1 2018 Commerce Question 22
Practice objective / multiple choice question 22 from the 2018 Waec Model Questions Vol1 Commerce examination.
A consumer goods item has a production cost of ₦8,000 per unit. Under the Consumer Protection Act, the selling price may not exceed the production cost plus a 25% profit margin, and any price increase after the first year must not exceed the annual inflation rate of 6% compounded each year. The item was sold at ₦10,000 in 2022. In 2024 the retailer raised the price to ₦12,500. Determine whether the 2024 price complies with both regulations. If it does not, calculate the maximum legal price under each rule and state which rule is more restrictive.
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About This Question
This is Waec Model Questions Vol1 2018 Commerce Question 22. It is one of the objective questions from the 2018 Waec Model Questions Vol1 Commerce examination.
Difficulty level: Hard .
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