Post Utme Rsu 2024 Economics Question 35

Practice objective / multiple choice question 35 from the 2024 Post Utme Rsu Economics examination.

Post Utme Rsu 2024 Economics Objective / Multiple Choice
Question 35 POST_UTME_RSU • 2024 • ECONOMICS • objective

A firm is considering the introduction of a new product. The demand for the product is expected to be highly elastic in the short run, but inelastic in the long run. What would be the likely effect of a price increase on the firm's revenue in the short run?

Answer Options

A. Increase in revenue due to increased demand
Correct Answer B. Decrease in revenue due to decreased demand
C. No change in revenue
D. Increase in revenue due to increased price
Correct Answer
B
Correct Option:
Decrease in revenue due to decreased demand

About This Question

This is Post Utme Rsu 2024 Economics Question 35. It is one of the objective questions from the 2024 Post Utme Rsu Economics examination.

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