Gce Model Questions Vol1 2020 Agricultural Science Question 42
Practice objective / multiple choice question 42 from the 2020 Gce Model Questions Vol1 Agricultural Science examination.
An agricultural producer grows wheat. Fixed costs are \(₦150{,}000\) per season and the variable cost is \(₦30{,}000\) per ton produced. The current market price is \(₦45{,}000\) per ton, at which the farmer expects to sell 10 tons. The price elasticity of demand for wheat is \(-0.4\). If the market price rises to \(₦50{,}000\) per ton, estimate the new quantity the farmer can sell (using the elasticity) and calculate the resulting profit. State whether profit increases or decreases and by how much (in naira).
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About This Question
This is Gce Model Questions Vol1 2020 Agricultural Science Question 42. It is one of the objective questions from the 2020 Gce Model Questions Vol1 Agricultural Science examination.
Difficulty level: Hard .
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