Post Utme Crawford University 2023 Commerce Question 36

Practice objective / multiple choice question 36 from the 2023 Post Utme Crawford University Commerce examination.

Post Utme Crawford University 2023 Commerce Objective / Multiple Choice
Question 36 POST_UTME_CRAWFORD_UNIVERSITY • 2023 • COMMERCE • objective

In a perfectly competitive market, the supply curve is typically represented by the marginal cost curve. However, in a market with increasing marginal costs, the supply curve will shift to the left. What is the likely effect on the equilibrium price and quantity?

Answer Options

Correct Answer A. The equilibrium price will increase, and the equilibrium quantity will decrease.
B. The equilibrium price will decrease, and the equilibrium quantity will increase.
C. The equilibrium price will remain the same, and the equilibrium quantity will decrease.
D. The equilibrium price will increase, and the equilibrium quantity will increase.
Correct Answer
A
Correct Option:
The equilibrium price will increase, and the equilibrium quantity will decrease.

About This Question

This is Post Utme Crawford University 2023 Commerce Question 36. It is one of the objective questions from the 2023 Post Utme Crawford University Commerce examination.

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