Gce Model Questions Vol1 2022 Economics Question 15
Practice objective / multiple choice question 15 from the 2022 Gce Model Questions Vol1 Economics examination.
The market demand for a good is \(Q = 500 - 5P\). Currently the price is \(P_{0}=40\). The government proposes to raise the price to \(P_{1}=50\). Calculate the price elasticity of demand at the initial price, state whether total revenue will increase or decrease, and find the percentage change in total revenue (to one decimal place).
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About This Question
This is Gce Model Questions Vol1 2022 Economics Question 15. It is one of the objective questions from the 2022 Gce Model Questions Vol1 Economics examination.
Difficulty level: Medium .
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