Post Utme Noun 2020 Economics Question 4

Practice objective / multiple choice question 4 from the 2020 Post Utme Noun Economics examination.

Post Utme Noun 2020 Economics Objective / Multiple Choice

Question 4 POST_UTME_NOUN • 2020 • ECONOMICS • objective

A firm is considering two different pricing strategies: one that uses a high price and another that uses a low price. If the firm's demand function is characterized by a high price elasticity, what will be the effect on the firm's revenue if it increases the price?

A. The revenue will increase

Correct Answer B. The revenue will decrease

C. The revenue will remain unchanged

D. The effect on the revenue is uncertain

Correct Answer

Correct Option:

The revenue will decrease

This is Post Utme Noun 2020 Economics Question 4. It is one of the objective questions from the 2020 Post Utme Noun Economics examination.

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