Neco 2017 Economics Question 44

Practice objective / multiple choice question 44 from the 2017 Neco Economics examination.

Neco 2017 Economics Objective / Multiple Choice Medium Difficulty
Question 44 NECO • 2017 • ECONOMICS • objective

The market demand for a product is given by \( Q = 800 - 4P \). (a) Compute the price elasticity of demand at the price \( P = 100 \). (b) If the price is increased by 5 %, estimate the percentage change in total revenue and state whether total revenue will rise or fall.

Answer Options

A. Elasticity = -0.5; Revenue will fall by approximately 2 %
B. Elasticity = -1.5; Revenue will rise by approximately 5 %
C. Elasticity = -1; Revenue will rise by approximately 5 %
Correct Answer D. Elasticity = -1; Revenue will fall by approximately 5 %
Correct Answer
D
Correct Option:
Elasticity = -1; Revenue will fall by approximately 5 %

About This Question

This is Neco 2017 Economics Question 44. It is one of the objective questions from the 2017 Neco Economics examination.

Difficulty level: Medium .

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