Post Utme Lasu 2020 Economics Question 29

Practice objective / multiple choice question 29 from the 2020 Post Utme Lasu Economics examination.

Post Utme Lasu 2020 Economics Objective / Multiple Choice
Question 29 POST_UTME_LASU • 2020 • ECONOMICS • objective

A firm's demand function is given by Q = 100 - 2P, and its supply function is given by Q = 2P - 10. If the firm's current price is P = 20, calculate the firm's current quantity supplied and quantity demanded. Also, calculate the firm's current elasticity of demand and elasticity of supply.

Answer Options

Correct Answer A. Quantity supplied = 40, Quantity demanded = 30, Elasticity of demand = 2, Elasticity of supply = 0.5
B. Quantity supplied = 30, Quantity demanded = 40, Elasticity of demand = 0.5, Elasticity of supply = 2
C. Quantity supplied = 50, Quantity demanded = 20, Elasticity of demand = 1, Elasticity of supply = 1
D. Quantity supplied = 20, Quantity demanded = 50, Elasticity of demand = 0.5, Elasticity of supply = 2
Correct Answer
A
Correct Option:
Quantity supplied = 40, Quantity demanded = 30, Elasticity of demand = 2, Elasticity of supply = 0.5

About This Question

This is Post Utme Lasu 2020 Economics Question 29. It is one of the objective questions from the 2020 Post Utme Lasu Economics examination.

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