Post Utme Lead City University 2017 Economics Question 24

Practice objective / multiple choice question 24 from the 2017 Post Utme Lead City University Economics examination.

Post Utme Lead City University 2017 Economics Objective / Multiple Choice
Question 24 POST_UTME_LEAD_CITY_UNIVERSITY • 2017 • 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 is the equilibrium price and quantity of the product?

Answer Options

Correct Answer A. The equilibrium price and quantity are determined by the intersection of the market demand and supply curves.
B. The equilibrium price and quantity are determined by the firms' individual supply curves.
C. The equilibrium price and quantity are determined by the market demand curve and the firms' individual demand curves.
D. The equilibrium price and quantity are determined by the firms' individual supply curves and the market demand curve.
Correct Answer
A
Correct Option:
The equilibrium price and quantity are determined by the intersection of the market demand and supply curves.

About This Question

This is Post Utme Lead City University 2017 Economics Question 24. It is one of the objective questions from the 2017 Post Utme Lead City University Economics examination.

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