Post Utme Bowen University 2017 Economics Question 1

Practice objective / multiple choice question 1 from the 2017 Post Utme Bowen University Economics examination.

Post Utme Bowen University 2017 Economics Objective / Multiple Choice
Question 1 POST_UTME_BOWEN_UNIVERSITY • 2017 • ECONOMICS • objective

Consider a perfectly competitive market with 5 firms, each producing a homogeneous product. If the market demand curve is downward sloping and the firms are price takers, what is the likely effect on the market supply curve if the government imposes a tax on the firms?

Answer Options

A. The supply curve shifts to the left.
Correct Answer B. The supply curve shifts to the right.
C. The supply curve remains unchanged.
D. The supply curve becomes vertical.
Correct Answer
B
Correct Option:
The supply curve shifts to the right.

About This Question

This is Post Utme Bowen University 2017 Economics Question 1. It is one of the objective questions from the 2017 Post Utme Bowen University Economics examination.

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