Post Utme Futa 2020 Commerce Question 1

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

Post Utme Futa 2020 Commerce Objective / Multiple Choice
Question 1 POST_UTME_FUTA • 2020 • COMMERCE • objective

In a perfectly competitive market, the law of supply states that the quantity supplied of a good increases as the price of the good increases, ceteris paribus. However, the law of supply also states that the quantity supplied of a good decreases as the price of the good decreases, ceteris paribus. Which of the following is a correct statement regarding the law of supply?

Answer Options

A. The law of supply is a fundamental concept in economics that explains the relationship between the price of a good and the quantity supplied of the good.
B. The law of supply is a concept that is only applicable in perfectly competitive markets.
Correct Answer C. The law of supply states that the quantity supplied of a good increases as the price of the good increases, ceteris paribus.
D. The law of supply states that the quantity supplied of a good decreases as the price of the good increases, ceteris paribus.
Correct Answer
C
Correct Option:
The law of supply states that the quantity supplied of a good increases as the price of the good increases, ceteris paribus.

About This Question

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

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