Post Utme Abu 2021 Economics Question 19

Practice objective / multiple choice question 19 from the 2021 Post Utme Abu Economics examination.

Post Utme Abu 2021 Economics Objective / Multiple Choice
Question 19 POST_UTME_ABU • 2021 • ECONOMICS • objective

A government imposes a subsidy on a firm's output. If the firm's supply curve shifts to the right due to the subsidy, what is the likely effect on the firm's price?

Answer Options

A. The price will increase.
Correct Answer B. The price will decrease.
C. The price will remain unchanged.
D. The price will fluctuate.
Correct Answer
B
Correct Option:
The price will decrease.

About This Question

This is Post Utme Abu 2021 Economics Question 19. It is one of the objective questions from the 2021 Post Utme Abu Economics examination.

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