Post Utme Babcock University 2022 Economics Question 21

Practice objective / multiple choice question 21 from the 2022 Post Utme Babcock University Economics examination.

Post Utme Babcock University 2022 Economics Objective / Multiple Choice
Question 21 POST_UTME_BABCOCK_UNIVERSITY • 2022 • ECONOMICS • objective

The government of a country decides to implement a policy to reduce the price of a commodity by 20% to increase its consumption. However, the demand for the commodity is inelastic. What will be the effect on the government's revenue?

Answer Options

A. The government's revenue will increase
Correct Answer B. The government's revenue will decrease
C. The government's revenue will remain the same
D. The effect on the government's revenue is uncertain
Correct Answer
B
Correct Option:
The government's revenue will decrease

About This Question

This is Post Utme Babcock University 2022 Economics Question 21. It is one of the objective questions from the 2022 Post Utme Babcock University Economics examination.

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