Post Utme Achievers University 2018 Economics Question 22

Practice objective / multiple choice question 22 from the 2018 Post Utme Achievers University Economics examination.

Post Utme Achievers University 2018 Economics Objective / Multiple Choice
Question 22 POST_UTME_ACHIEVERS_UNIVERSITY • 2018 • ECONOMICS • objective

The demand for a product is said to be elastic if a small change in price leads to a large change in the quantity demanded. Which of the following is a correct example of an elastic demand?

Answer Options

A. A 10% increase in the price of a luxury item leads to a 5% decrease in demand.
Correct Answer B. A 10% increase in the price of a necessity leads to a 20% decrease in demand.
C. A 10% increase in the price of a substitute good leads to a 5% decrease in demand.
D. A 10% increase in the price of a complementary good leads to a 5% decrease in demand.
Correct Answer
B
Correct Option:
A 10% increase in the price of a necessity leads to a 20% decrease in demand.

About This Question

This is Post Utme Achievers University 2018 Economics Question 22. It is one of the objective questions from the 2018 Post Utme Achievers University Economics examination.

View More Post Utme Achievers University 2018 Economics Questions More Post Utme Achievers University Practice Questions Back to Questions

Master the Exam!

You've seen a preview, but there are thousands more questions plus AI tutor to break down complex solutions.

Unlock Full Access Available for Android & Windows
Chat with Support