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WAEC Economics 2024 Question 8

Question 8

Elasticity

When total revenue increases as price falls, the coefficient of price elasticity of demand is

  1. A.greater than one.
  2. B.one.
  3. C.less than one.
  4. D.zero.
Show the answer and explanation

Answer: A (greater than one.)

Explanation

Revenue rises after a price cut only when demand is elastic.