Gce Model Questions Vol1 2023 Economics Question 28
Practice objective / multiple choice question 28 from the 2023 Gce Model Questions Vol1 Economics examination.
Demand for good X is given by \(Q_x = 120 - 4P_x + 2P_y\), where \(P_x\) and \(P_y\) are the prices (in dollars) of goods X and Y respectively. The current prices are \(P_x = 10\) and \(P_y = 8\).\n\n(a) Calculate the own‑price elasticity of demand for X at these prices.\n(b) If the price of X rises by 5\%, will total revenue for X increase or decrease? State the direction only.
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About This Question
This is Gce Model Questions Vol1 2023 Economics Question 28. It is one of the objective questions from the 2023 Gce Model Questions Vol1 Economics examination.
Difficulty level: Medium .
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