Neco Model Questions Vol1 2022 Economics Question 39

Practice objective / multiple choice question 39 from the 2022 Neco Model Questions Vol1 Economics examination.

Neco Model Questions Vol1 2022 Economics Objective / Multiple Choice Medium Difficulty
Question 39 NECO_MODEL_QUESTIONS_VOL1 • 2022 • ECONOMICS • objective

The demand for a product is given by \(Q = 120 - 3P\). (i) At what price does total revenue reach its maximum? (ii) Verify the price elasticity of demand at that price.

Answer Options

Correct Answer A. Price = 20, Elasticity = -1
B. Price = 15, Elasticity = -0.8
C. Price = 25, Elasticity = -1.2
D. Price = 20, Elasticity = -0.5
Correct Answer
A
Correct Option:
Price = 20, Elasticity = -1

About This Question

This is Neco Model Questions Vol1 2022 Economics Question 39. It is one of the objective questions from the 2022 Neco Model Questions Vol1 Economics examination.

Difficulty level: Medium .

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