Post Utme Aaua 2022 Economics Question 3

Practice objective / multiple choice question 3 from the 2022 Post Utme Aaua Economics examination.

Post Utme Aaua 2022 Economics Objective / Multiple Choice
Question 3 POST_UTME_AAUA • 2022 • ECONOMICS • objective

U\sing the concept of opportunity \cost, explain why a firm may choose to produce a good with a low price elasticity of demand.

Answer Options

A. The firm may choose to produce a good with a low price elasticity of demand because it is a luxury good.
Correct Answer B. The firm may choose to produce a good with a low price elasticity of demand because it is a necessity good.
C. The firm may choose to produce a good with a low price elasticity of demand because it is a substitute for another good.
D. The firm may choose to produce a good with a low price elasticity of demand because it is a complement for another good.
Correct Answer
B
Correct Option:
The firm may choose to produce a good with a low price elasticity of demand because it is a necessity good.

About This Question

This is Post Utme Aaua 2022 Economics Question 3. It is one of the objective questions from the 2022 Post Utme Aaua Economics examination.

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