Post Utme Madonna University 2018 Commerce Question 6

Practice objective / multiple choice question 6 from the 2018 Post Utme Madonna University Commerce examination.

Post Utme Madonna University 2018 Commerce Objective / Multiple Choice
Question 6 POST_UTME_MADONNA_UNIVERSITY • 2018 • COMMERCE • objective

In a perfectly competitive market, the supply curve is perfectly elastic, and the demand curve is perfectly inelastic. What is the effect on the equilibrium price and quantity?

Answer Options

Correct Answer A. The equilibrium price increases, and the equilibrium quantity decreases.
B. The equilibrium price decreases, and the equilibrium quantity increases.
C. The equilibrium price remains the same, and the equilibrium quantity remains the same.
D. The equilibrium price and quantity are undefined.
Correct Answer
A
Correct Option:
The equilibrium price increases, and the equilibrium quantity decreases.

About This Question

This is Post Utme Madonna University 2018 Commerce Question 6. It is one of the objective questions from the 2018 Post Utme Madonna University Commerce examination.

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