WAEC Economics 2024 Objective — Question 8

Question 8 of 50 from the West African Examinations Council (WAEC) Economics 2024 Objective paper, with the correct answer and a full explanation.

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

A. greater than one.Correct
B. one.
C. less than one.
D. zero.

Explanation

If a fall in price results in an increase in revenue, the good is price elastic; when demand is price elastic, the price elasticity of demand must be greater than one.

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