Waec Model Questions Vol1 2019 Economics Question 2

Practice essay / theory question 2 from the 2019 Waec Model Questions Vol1 Economics examination. This question covers Demand and Supply .

Waec Model Questions Vol1 2019 Economics Essay / Theory

Topic: Demand and Supply

Question 2 WAEC_MODEL_QUESTIONS_VOL1 • 2019 • ECONOMICS • essay

In a recent drought-affected season, the price of a bag of maize rose from ₦200 to ₦250. The price elasticity of demand for maize in Nigeria is estimated at –0.8. In the previous month, 5,000 bags of maize were sold each month at the original price.

Question Parts

( a )

Using the given price elasticity, calculate the percentage change in the quantity demanded of maize resulting from the price increase.

( b )

Determine the new quantity demanded of maize after the price rise.

( c )

Compute total revenue (price × quantity) before and after the price increase and state whether total revenue has increased or decreased.

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About This Question

This is Waec Model Questions Vol1 2019 Economics Question 2. It is one of the essay questions from the 2019 Waec Model Questions Vol1 Economics examination.

The question covers Demand and Supply .

View More Waec Model Questions Vol1 2019 Economics Questions More Waec Model Questions Vol1 Practice Questions Back to Questions

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