Post Utme Achievers University 2021 Economics Question 8

Practice objective / multiple choice question 8 from the 2021 Post Utme Achievers University Economics examination.

Post Utme Achievers University 2021 Economics Objective / Multiple Choice
Question 8 POST_UTME_ACHIEVERS_UNIVERSITY • 2021 • ECONOMICS • objective

A government is considering a tax on a particular good to raise revenue. If the tax is imposed and the demand for the good is inelastic, what is the expected effect on the price of the good?

Answer Options

Correct Answer A. The price of the good will increase.
B. The price of the good will decrease.
C. The price of the good will remain unchanged.
D. The price of the good will increase by a smaller amount than the tax.
Correct Answer
A
Correct Option:
The price of the good will increase.

About This Question

This is Post Utme Achievers University 2021 Economics Question 8. It is one of the objective questions from the 2021 Post Utme Achievers University Economics examination.

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