Post Utme Covenant University 2020 Commerce Question 1

Practice objective / multiple choice question 1 from the 2020 Post Utme Covenant University Commerce examination.

Post Utme Covenant University 2020 Commerce Objective / Multiple Choice
Question 1 POST_UTME_COVENANT_UNIVERSITY • 2020 • COMMERCE • objective

In a perfectly competitive market, the supply curve is perfectly elastic. What is the implication of this on the price elasticity of demand?

Answer Options

A. The price elasticity of demand is perfectly inelastic.
Correct Answer B. The price elasticity of demand is perfectly elastic.
C. The price elasticity of demand is unit elastic.
D. The price elasticity of demand is not affected.
Correct Answer
B
Correct Option:
The price elasticity of demand is perfectly elastic.

About This Question

This is Post Utme Covenant University 2020 Commerce Question 1. It is one of the objective questions from the 2020 Post Utme Covenant University Commerce examination.

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