Post Utme Rhema University 2023 Economics Question 10

Practice objective / multiple choice question 10 from the 2023 Post Utme Rhema University Economics examination.

Post Utme Rhema University 2023 Economics Objective / Multiple Choice
Question 10 POST_UTME_RHEMA_UNIVERSITY • 2023 • ECONOMICS • objective

A firm's demand curve is given by Qd = 100 - 2P. U\sing the concept of elasticity, explain why the firm's demand is inelastic at a price of 20.

Answer Options

Correct Answer A. The firm's demand is inelastic at a price of 20 because the elasticity of demand is less than 1.
B. The firm's demand is elastic at a price of 20 because the elasticity of demand is greater than 1.
C. The firm's demand is inelastic at a price of 20 because the elasticity of demand is equal to 1.
D. The firm's demand is elastic at a price of 20 because the elasticity of demand is less than 1.
Correct Answer
A
Correct Option:
The firm's demand is inelastic at a price of 20 because the elasticity of demand is less than 1.

About This Question

This is Post Utme Rhema University 2023 Economics Question 10. It is one of the objective questions from the 2023 Post Utme Rhema University Economics examination.

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