Post Utme Unilorin 2021 Economics Question 7

Practice objective / multiple choice question 7 from the 2021 Post Utme Unilorin Economics examination.

Post Utme Unilorin 2021 Economics Objective / Multiple Choice

Question 7 POST_UTME_UNILORIN • 2021 • ECONOMICS • objective

A monopolistically competitive firm faces a downward-sloping demand curve. If the firm increases its price, what will happen to its revenue?

Answer Options

A. Revenue will increase because the firm is charging a higher price for its product.

Correct Answer B. Revenue will decrease because the firm is charging a higher price for its product, but the quantity demanded will decrease.

C. Revenue will remain the same because the firm is charging a higher price for its product, but the quantity demanded will increase.

D. Revenue will increase because the firm is charging a higher price for its product, and the quantity demanded will increase.

Correct Answer

Correct Option:

Revenue will decrease because the firm is charging a higher price for its product, but the quantity demanded will decrease.

About This Question

This is Post Utme Unilorin 2021 Economics Question 7. It is one of the objective questions from the 2021 Post Utme Unilorin Economics examination.

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