Post Utme Lasu 2020 Economics Question 21

Practice objective / multiple choice question 21 from the 2020 Post Utme Lasu Economics examination.

Post Utme Lasu 2020 Economics Objective / Multiple Choice
Question 21 POST_UTME_LASU • 2020 • ECONOMICS • objective

Consider a perfectly competitive market with n firms, each producing a homogeneous product. If the market demand curve is downward sloping and the firms are price takers, what will be the effect on the market supply curve if the price of a key input increases?

Answer Options

A. The market supply curve will shift to the left.
Correct Answer B. The market supply curve will shift to the right.
C. The market supply curve will remain unchanged.
D. The market supply curve will shift downward.
Correct Answer
B
Correct Option:
The market supply curve will shift to the right.

About This Question

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

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