Post Utme Pan Atlantic University 2018 Economics Question 10

Practice objective / multiple choice question 10 from the 2018 Post Utme Pan Atlantic University Economics examination.

Post Utme Pan Atlantic University 2018 Economics Objective / Multiple Choice
Question 10 POST_UTME_PAN-ATLANTIC_UNIVERSITY • 2018 • ECONOMICS • objective

U\sing the concept of elasticity of demand, explain why a firm's revenue will increase as it increases the price of its product.

Answer Options

A. The firm's revenue will increase as it increases the price of its product because the firm is experiencing elastic demand.
Correct Answer B. The firm's revenue will increase as it increases the price of its product because the firm is experiencing inelastic demand.
C. The firm's revenue will not change as it increases the price of its product because the firm is experiencing unit elastic demand.
D. The firm's revenue will decrease as it increases the price of its product because the firm is experiencing elastic demand.
Correct Answer
B
Correct Option:
The firm's revenue will increase as it increases the price of its product because the firm is experiencing inelastic demand.

About This Question

This is Post Utme Pan Atlantic University 2018 Economics Question 10. It is one of the objective questions from the 2018 Post Utme Pan Atlantic University Economics examination.

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