Post Utme Redeemers University 2019 Economics Question 21

Practice objective / multiple choice question 21 from the 2019 Post Utme Redeemers University Economics examination.

Post Utme Redeemers University 2019 Economics Objective / Multiple Choice
Question 21 POST_UTME_REDEEMERS_UNIVERSITY • 2019 • 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 likely effect on the market supply curve if the government imposes a tax on the firms?

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 become vertical.
Correct Answer
B
Correct Option:
The market supply curve will shift to the right.

About This Question

This is Post Utme Redeemers University 2019 Economics Question 21. It is one of the objective questions from the 2019 Post Utme Redeemers University Economics examination.

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