Post Utme Achievers University 2024 Economics Question 1

Practice objective / multiple choice question 1 from the 2024 Post Utme Achievers University Economics examination.

Post Utme Achievers University 2024 Economics Objective / Multiple Choice
Question 1 POST_UTME_ACHIEVERS_UNIVERSITY • 2024 • ECONOMICS • objective

In a perfectly competitive market, the equilibrium price and quantity are determined by the intersection of the market demand and supply curves. However, if the market demand curve is downward sloping and the market supply curve is upward sloping, what will be the effect on the equilibrium price and quantity if the government imposes a price ceiling of ₦100?

Answer Options

A. The price will rise to ₦100, and the quantity will increase.
Correct Answer B. The price will fall below ₦100, and the quantity will decrease.
C. The price will remain at ₦100, and the quantity will remain unchanged.
D. The price will rise above ₦100, and the quantity will decrease.
Correct Answer
B
Correct Option:
The price will fall below ₦100, and the quantity will decrease.

About This Question

This is Post Utme Achievers University 2024 Economics Question 1. It is one of the objective questions from the 2024 Post Utme Achievers University Economics examination.

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