Post Utme Lead City University 2024 Economics Question 37

Practice objective / multiple choice question 37 from the 2024 Post Utme Lead City University Economics examination.

Post Utme Lead City University 2024 Economics Objective / Multiple Choice
Question 37 POST_UTME_LEAD_CITY_UNIVERSITY • 2024 • ECONOMICS • objective

A firm's total revenue (TR) is given by the equation TR = P × Q, where P is the price and Q is the quantity sold. If the price elasticity of demand is unit elastic, what is the relationship between the percentage change in price and the percentage change in quantity demanded?

Answer Options

Correct Answer A. Percentage change in price is equal to the percentage change in quantity demanded
B. Percentage change in price is greater than the percentage change in quantity demanded
C. Percentage change in price is less than the percentage change in quantity demanded
D. Percentage change in price is inversely proportional to the percentage change in quantity demanded
Correct Answer
A
Correct Option:
Percentage change in price is equal to the percentage change in quantity demanded

About This Question

This is Post Utme Lead City University 2024 Economics Question 37. It is one of the objective questions from the 2024 Post Utme Lead City University Economics examination.

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