Post Utme Futo 2020 Commerce Question 21

Practice objective / multiple choice question 21 from the 2020 Post Utme Futo Commerce examination.

Post Utme Futo 2020 Commerce Objective / Multiple Choice
Question 21 POST_UTME_FUTO • 2020 • COMMERCE • objective

In a perfectly competitive market, what is the relationship between the price elasticity of demand and the firm's ability to influence the market price?

Answer Options

A. The firm can influence the market price if the price elasticity of demand is inelastic.
Correct Answer B. The firm cannot influence the market price if the price elasticity of demand is elastic.
C. The firm can influence the market price if the price elasticity of demand is unit elastic.
D. The firm cannot influence the market price if the price elasticity of demand is inelastic.
Correct Answer
B
Correct Option:
The firm cannot influence the market price if the price elasticity of demand is elastic.

About This Question

This is Post Utme Futo 2020 Commerce Question 21. It is one of the objective questions from the 2020 Post Utme Futo Commerce examination.

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