Post Utme Summit University 2018 Economics Question 6

Practice objective / multiple choice question 6 from the 2018 Post Utme Summit University Economics examination.

Post Utme Summit University 2018 Economics Objective / Multiple Choice
Question 6 POST_UTME_SUMMIT_UNIVERSITY • 2018 • ECONOMICS • objective

The elasticity of demand for a commodity is measured by the percentage change in the quantity demanded in response to a given percentage change in the price of the commodity. If the demand for a commodity is elastic, what will happen to the total revenue of the firm if the price of the commodity increases by 10%?

Answer Options

A. Total revenue will increase by 10%
Correct Answer B. Total revenue will decrease by 10%
C. Total revenue will increase by 20%
D. Total revenue will decrease by 20%
Correct Answer
B
Correct Option:
Total revenue will decrease by 10%

About This Question

This is Post Utme Summit University 2018 Economics Question 6. It is one of the objective questions from the 2018 Post Utme Summit University Economics examination.

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