Post Utme Redeemers University 2023 Economics Question 39

Practice objective / multiple choice question 39 from the 2023 Post Utme Redeemers University Economics examination.

Post Utme Redeemers University 2023 Economics Objective / Multiple Choice
Question 39 POST_UTME_REDEEMERS_UNIVERSITY • 2023 • ECONOMICS • objective

In a perfectly competitive market, the equilibrium price and quantity are determined by the intersection of the market demand and supply curves. However, if the market demand curve shifts to the left due to a decrease in consumer income, what will be the effect on the equilibrium price and quantity?

Answer Options

A. The equilibrium price will decrease, and the equilibrium quantity will increase.
Correct Answer B. The equilibrium price will increase, and the equilibrium quantity will decrease.
C. The equilibrium price will decrease, and the equilibrium quantity will decrease.
D. The equilibrium price will increase, and the equilibrium quantity will increase.
Correct Answer
B
Correct Option:
The equilibrium price will increase, and the equilibrium quantity will decrease.

About This Question

This is Post Utme Redeemers University 2023 Economics Question 39. It is one of the objective questions from the 2023 Post Utme Redeemers University Economics examination.

View More Post Utme Redeemers University 2023 Economics Questions More Post Utme Redeemers University Practice Questions Back to Questions

Master the Exam!

You've seen a preview, but there are thousands more questions plus AI tutor to break down complex solutions.

Unlock Full Access Available for Android & Windows
Chat with Support