Question 31
POST_UTME_AAUA
•
2018
•
COMMERCE
•
objective
In a perfectly competitive market, the supply curve is horizontal and the demand curve is downward-sloping. What is the equilibrium price and quantity of the commodity?
Answer Options
A.
The equilibrium price is where the supply and demand curves intersect, and the quantity is the point on the supply curve where the demand curve is tangent to it.
Correct Answer
B.
The equilibrium price is the price at which the quantity supplied equals the quantity demanded, and the quantity is the point on the supply curve where the demand curve is tangent to it.
C.
The equilibrium price is the price at which the quantity supplied equals the quantity demanded, and the quantity is the point on the demand curve where the supply curve is tangent to it.
D.
The equilibrium price is the price at which the quantity supplied equals the quantity demanded, and the quantity is the point on the supply curve where the demand curve is tangent to it.
Correct Answer
B
Correct Option:
The equilibrium price is the price at which the quantity supplied equals the quantity demanded, and the quantity is the point on the supply curve where the demand curve is tangent to it.
About This Question
This is
Post Utme Aaua
2018
Commerce
Question 31.
It is one of the
objective
questions from the
2018
Post Utme Aaua
Commerce
examination.