GCE Economics 2023 Objective — Question 9
Question 9 of 50 from the General Certificate of Education (GCE) Economics 2023 Objective paper, with the correct answer and a full explanation.
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A fall in the price of a normal commodity which has elastic demand will result in A. a fall in quantity demanded B. an increase in revenue C. a fall in demand D. a decrease in revenue
- A. a fall in quantity demanded
- B. an increase in revenueCorrect
- C. a fall in demand
- D. a decrease in revenue
Explanation
For a commodity with elastic demand, a fall in price causes a proportionately larger rise in quantity demanded, so total revenue increases.
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