Post Utme Redeemers University 2024 Economics Question 1

Practice objective / multiple choice question 1 from the 2024 Post Utme Redeemers University Economics examination.

Post Utme Redeemers University 2024 Economics Objective / Multiple Choice
Question 1 POST_UTME_REDEEMERS_UNIVERSITY • 2024 • ECONOMICS • objective
Post Utme Redeemers University 2024 Economics Question 1 diagram

Consider a perfectly competitive market with a downward-sloping demand curve and an upward-sloping supply curve. If the market price is initially at P1 and the quantity demanded is Q1, and then the demand curve shifts to the left, what will happen to the equilibrium price and quantity?

Answer Options

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

About This Question

This is Post Utme Redeemers University 2024 Economics Question 1. It is one of the objective questions from the 2024 Post Utme Redeemers University Economics examination.

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