Post Utme Noun 2017 Economics Question 35

Practice objective / multiple choice question 35 from the 2017 Post Utme Noun Economics examination.

Post Utme Noun 2017 Economics Objective / Multiple Choice

Question 35 POST_UTME_NOUN • 2017 • ECONOMICS • objective

The concept of elasticity of supply is crucial in unders\tanding the responsiveness of producers to changes in the price of a commodity. Which of the following statements best describes the law of supply?

A. As the price of a commodity increases, the quantity supplied decreases.

B. As the price of a commodity decreases, the quantity supplied increases.

C. The law of supply states that the quantity supplied of a commodity is inversely related to its price.

Correct Answer D. The law of supply states that the quantity supplied of a commodity is directly related to its price.

Correct Answer

Correct Option:

The law of supply states that the quantity supplied of a commodity is directly related to its price.

This is Post Utme Noun 2017 Economics Question 35. It is one of the objective questions from the 2017 Post Utme Noun Economics examination.

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