Post Utme Caleb University 2025 Economics Question 21

Practice objective / multiple choice question 21 from the 2025 Post Utme Caleb University Economics examination.

Post Utme Caleb University 2025 Economics Objective / Multiple Choice
Question 21 POST_UTME_CALEB_UNIVERSITY • 2025 • ECONOMICS • objective

Consider a perfectly competitive market with 5 firms, each producing a homogeneous good. If the market demand curve is downward sloping and the firms are price takers, what is the effect of an increase in the price of the good on the quantity supplied by each firm?

Answer Options

A. The quantity supplied by each firm increases
Correct Answer B. The quantity supplied by each firm decreases
C. The quantity supplied by each firm remains unchanged
D. The quantity supplied by each firm increases in the short run but decreases in the long run
Correct Answer
B
Correct Option:
The quantity supplied by each firm decreases

About This Question

This is Post Utme Caleb University 2025 Economics Question 21. It is one of the objective questions from the 2025 Post Utme Caleb University Economics examination.

View More Post Utme Caleb University 2025 Economics Questions More Post Utme Caleb University Practice Questions Back to Questions

Master the Exam!

You've seen a preview, but there are thousands more questions plus AI tutor to break down complex solutions.

Unlock Full Access Available for Android & Windows
Chat with Support