Post Utme Achievers University 2022 Economics Question 26
Practice objective / multiple choice question 26 from the 2022 Post Utme Achievers University Economics examination.
The government of Nigeria has introduced a new tax policy aimed at increa\sing revenue from the agricultural sector. The policy includes a 10% tax on all agricultural products sold in the country. However, the policy also provides a 20% subsidy on inputs such as fertilizers and seeds for small-scale farmers. Assuming the demand for agricultural products is elastic, what is the likely effect of the tax policy on the price of agricultural products?
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About This Question
This is Post Utme Achievers University 2022 Economics Question 26. It is one of the objective questions from the 2022 Post Utme Achievers University Economics examination.
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