A fall in the price of a normal commodity which has elastic demand will result...
ECONOMICS
WAEC 2023
A fall in the price of a normal commodity which has elastic demand will result in
- A. a fall in demand
- B. a fall in quantity demanded
- C. an increase in revenue
- D. a decrease in revenue
Correct Answer: C. an increase in revenue
Explanation
A fall in the price of a normal commodity which has elastic demand will result in an increase in revenue. This is because elastic demand means that consumers are very responsive to changes in price. When the price falls, consumers will buy more of the commodity, which will increase the total revenue.
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