Neco 2018 Economics Question 8
Practice objective / multiple choice question 8 from the 2018 Neco Economics examination.
After a price reduction, the price of a product falls from \(\text{₦}200\) to \(\text{₦}150\). During the same period, the quantity demanded rises from 4,000 units to 5,600 units. (a) Calculate the price elasticity of demand using the midpoint method. (b) Based on the elasticity, should the firm raise or lower the price to increase total revenue? State the elasticity value (to two decimal places) and the appropriate pricing action.
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About This Question
This is Neco 2018 Economics Question 8. It is one of the objective questions from the 2018 Neco Economics examination.
Difficulty level: Medium .
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