Post Utme Achievers University 2021 Economics Question 5

Practice objective / multiple choice question 5 from the 2021 Post Utme Achievers University Economics examination.

Post Utme Achievers University 2021 Economics Objective / Multiple Choice
Question 5 POST_UTME_ACHIEVERS_UNIVERSITY • 2021 • ECONOMICS • objective

A government is considering a policy to increase the price of a commodity by 10%. However, the policy is expected to lead to a decrease in demand by 5%. What is the likely impact of the policy on the government's revenue?

Answer Options

A. The government's revenue will increase by 5%.
Correct Answer B. The government's revenue will decrease by 5%.
C. The government's revenue will remain the same.
D. The government's revenue will increase by 10%.
Correct Answer
B
Correct Option:
The government's revenue will decrease by 5%.

About This Question

This is Post Utme Achievers University 2021 Economics Question 5. It is one of the objective questions from the 2021 Post Utme Achievers University Economics examination.

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