WASSCE Economics · Paper 1 style

Revenue

One sample question with the full working. 1 more in the app, with instant feedback and repair sessions for the traps below.

A trader sells 20 bags at ₦500 each. Her total revenue is

A₦10 000
B₦520
C₦25
D₦500

Show the answer and working

Answer: A

TR = P × Q.

Trap B Uses the wrong arithmetic operation: Write the definition in words first (TR = price × quantity; ATC = TC ÷ Q) and only then put in numbers. Check units: totals and averages cannot be added.

Trap C Turns the formula upside down: Learn the formula with its meaning: elasticity = responsiveness of QUANTITY, so %ΔQ is on top; k = 1/MPS = 1/(1 − MPC).

Trap D Gives a number from the question as the answer: If your answer appears in the question, check again: the question almost never asks you to copy a figure. Work out the required quantity from its definition.

Traps in Revenue

Uses the wrong arithmetic operation
Write the definition in words first (TR = price × quantity; ATC = TC ÷ Q) and only then put in numbers. Check units: totals and averages cannot be added.
Turns the formula upside down
Learn the formula with its meaning: elasticity = responsiveness of QUANTITY, so %ΔQ is on top; k = 1/MPS = 1/(1 − MPC).
Gives a number from the question as the answer
If your answer appears in the question, check again: the question almost never asks you to copy a figure. Work out the required quantity from its definition.

Practise Revenue (1 questions)Send to your class on WhatsApp