Post Utme Unilag 2017 Economics Question 28

Practice objective / multiple choice question 28 from the 2017 Post Utme Unilag Economics examination.

Post Utme Unilag 2017 Economics Objective / Multiple Choice
Question 28 POST_UTME_UNILAG • 2017 • ECONOMICS • objective

A firm is producing a good with a cons\tant elasticity of demand (ED) of -2. If the firm increases its price by 10%, what will happen to its revenue?

Answer Options

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

About This Question

This is Post Utme Unilag 2017 Economics Question 28. It is one of the objective questions from the 2017 Post Utme Unilag Economics examination.

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