Post Utme Bells University 2024 Economics Question 8

Practice objective / multiple choice question 8 from the 2024 Post Utme Bells University Economics examination.

Post Utme Bells University 2024 Economics Objective / Multiple Choice
Question 8 POST_UTME_BELLS_UNIVERSITY • 2024 • ECONOMICS • objective

A government is considering a tax on a particular good. The tax will increase the price of the good by 10%. If the demand for the good is inelastic, what will happen to government revenue?

Answer Options

Correct Answer A. Government revenue will increase
B. Government revenue will decrease
C. Government revenue will remain unchanged
D. Government revenue will increase, but at a decrea\sing rate
Correct Answer
A
Correct Option:
Government revenue will increase

About This Question

This is Post Utme Bells University 2024 Economics Question 8. It is one of the objective questions from the 2024 Post Utme Bells University Economics examination.

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