Post Utme Bells University 2022 Economics Question 22

Practice objective / multiple choice question 22 from the 2022 Post Utme Bells University Economics examination.

Post Utme Bells University 2022 Economics Objective / Multiple Choice
Question 22 POST_UTME_BELLS_UNIVERSITY • 2022 • ECONOMICS • objective

The government of a country imposes a tax on a particular good, cau\sing the supply curve to shift to the left. If the demand curve is inelastic and the supply curve is elastic, what will be the effect on the equilibrium price and quantity?

Answer Options

Correct Answer A. The equilibrium price will increase and the equilibrium quantity will decrease.
B. The equilibrium price will decrease and the equilibrium quantity will increase.
C. The equilibrium price will increase and the equilibrium quantity will increase.
D. The equilibrium price will decrease and the equilibrium quantity will decrease.
Correct Answer
A
Correct Option:
The equilibrium price will increase and the equilibrium quantity will decrease.

About This Question

This is Post Utme Bells University 2022 Economics Question 22. It is one of the objective questions from the 2022 Post Utme Bells University Economics examination.

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