Post Utme Achievers University 2018 Commerce Question 23

Practice objective / multiple choice question 23 from the 2018 Post Utme Achievers University Commerce examination.

Post Utme Achievers University 2018 Commerce Objective / Multiple Choice
Question 23 POST_UTME_ACHIEVERS_UNIVERSITY • 2018 • COMMERCE • objective

A producer's supply curve is upward-sloping, indicating that as the price of the good increases, the quantity supplied also increases. Which of the following is a correct explanation for this phenomenon?

Answer Options

Correct Answer A. As the price of the good increases, the producer's revenue increases, leading to an increase in the quantity supplied.
B. As the price of the good increases, the producer's costs decrease, leading to an increase in the quantity supplied.
C. As the price of the good increases, the producer's supply curve shifts to the right, leading to an increase in the quantity supplied.
D. As the price of the good increases, the producer's supply curve shifts to the left, leading to a decrease in the quantity supplied.
Correct Answer
A
Correct Option:
As the price of the good increases, the producer's revenue increases, leading to an increase in the quantity supplied.

About This Question

This is Post Utme Achievers University 2018 Commerce Question 23. It is one of the objective questions from the 2018 Post Utme Achievers University Commerce examination.

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