Post Utme Bells University 2022 Economics Question 2

Practice objective / multiple choice question 2 from the 2022 Post Utme Bells University Economics examination.

Post Utme Bells University 2022 Economics Objective / Multiple Choice
Question 2 POST_UTME_BELLS_UNIVERSITY • 2022 • ECONOMICS • objective

A government is considering implementing a new tax on luxury goods to reduce income inequality. The tax is expected to increase the price of luxury goods by 20% and reduce the demand for these goods by 15%. If the initial price of luxury goods is ₦1000 and the initial demand is 1000 units, calculate the new price and demand for luxury goods.

Answer Options

Correct Answer A. New Price = ₦1200, New Demand = 850 units
B. New Price = ₦1200, New Demand = 900 units
C. New Price = ₦1000, New Demand = 850 units
D. New Price = ₦1000, New Demand = 900 units
Correct Answer
A
Correct Option:
New Price = ₦1200, New Demand = 850 units

About This Question

This is Post Utme Bells University 2022 Economics Question 2. It is one of the objective questions from the 2022 Post Utme Bells University Economics examination.

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