Post Utme Rsu 2020 Economics Question 6

Practice objective / multiple choice question 6 from the 2020 Post Utme Rsu Economics examination.

Post Utme Rsu 2020 Economics Objective / Multiple Choice

Question 6 POST_UTME_RSU • 2020 • ECONOMICS • objective

Suppose a firm faces a downward-sloping demand curve and an upward-sloping supply curve. If the price elasticity of demand is greater than 1, what will happen to the firm's revenue if the price increases by 10%?

A. Revenue will increase by 10%

Correct Answer B. Revenue will decrease by 10%

C. Revenue will remain unchanged

D. Revenue will increase by 20%

Correct Answer

Correct Option:

Revenue will decrease by 10%

This is Post Utme Rsu 2020 Economics Question 6. It is one of the objective questions from the 2020 Post Utme Rsu Economics examination.

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