Neco Model Questions Vol1 2018 Economics Question 3

Practice essay / theory question 3 from the 2018 Neco Model Questions Vol1 Economics examination. This question covers Elasticity, Demand .

Neco Model Questions Vol1 2018 Economics Essay / Theory

Topics: Elasticity Demand

Question 3 NECO_MODEL_QUESTIONS_VOL1 • 2018 • ECONOMICS • essay

The table below shows the quantity demanded of a locally produced rice brand at different prices in a competitive market. | Price (₦ per kg) | Quantity demanded (thousands of kg) | |------------------|--------------------------------------| | 200 | 30 | | 150 | 45 | | 120 | 55 | | 100 | 65 | Using this information, answer the following:

Question Parts

( a )

Using the midpoint (arc) method, calculate the price elasticity of demand between the price of ₦200 and ₦150.

( b )

Based on the elasticity obtained in part (a), explain the likely effect on total revenue if the price is reduced from ₦200 to ₦150.

( c )

Discuss two non‑price factors that could shift the demand curve for this rice and explain how each factor would affect the price elasticity of demand.

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About This Question

This is Neco Model Questions Vol1 2018 Economics Question 3. It is one of the essay questions from the 2018 Neco Model Questions Vol1 Economics examination.

The question covers Elasticity, Demand .

View More Neco Model Questions Vol1 2018 Economics Questions More Neco Model Questions Vol1 Practice Questions Back to Questions

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