Post Utme Elizade University 2019 Economics Question 19

Practice objective / multiple choice question 19 from the 2019 Post Utme Elizade University Economics examination.

Post Utme Elizade University 2019 Economics Objective / Multiple Choice
Question 19 POST_UTME_ELIZADE_UNIVERSITY • 2019 • ECONOMICS • objective

Consider a perfectly competitive market with 5 firms producing a homogeneous product. If each firm increases its production by 10% in response to a 10% decrease in market price, what will be the new equilibrium price and quantity?

Answer Options

A. New equilibrium price: ₦100, New equilibrium quantity: 100 units
Correct Answer B. New equilibrium price: ₦90, New equilibrium quantity: 110 units
C. New equilibrium price: ₦80, New equilibrium quantity: 120 units
D. New equilibrium price: ₦70, New equilibrium quantity: 130 units
Correct Answer
B
Correct Option:
New equilibrium price: ₦90, New equilibrium quantity: 110 units

About This Question

This is Post Utme Elizade University 2019 Economics Question 19. It is one of the objective questions from the 2019 Post Utme Elizade University Economics examination.

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