Post Utme Oau 2020 Economics Question 13

Practice objective / multiple choice question 13 from the 2020 Post Utme Oau Economics examination.

Post Utme Oau 2020 Economics Objective / Multiple Choice
Question 13 POST_UTME_OAU • 2020 • ECONOMICS • objective

The elasticity of demand for a good is measured by the percentage change in the quantity demanded in response to a 1% change in the price of the good. If the demand for a good is elastic, what happens to the total revenue of the firm as the price of the good increases?

Answer Options

A. Total revenue increases.
Correct Answer B. Total revenue decreases.
C. Total revenue remains cons\tant.
D. Total revenue becomes zero.
Correct Answer
B
Correct Option:
Total revenue decreases.

About This Question

This is Post Utme Oau 2020 Economics Question 13. It is one of the objective questions from the 2020 Post Utme Oau Economics examination.

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