Post Utme Bsu 2025 Economics Question 37

Practice objective / multiple choice question 37 from the 2025 Post Utme Bsu Economics examination.

Post Utme Bsu 2025 Economics Objective / Multiple Choice
Question 37 POST_UTME_BSU • 2025 • ECONOMICS • objective

A government is considering a tax on a good with a price elasticity of demand of -0.5. If the tax is 10% of the price, what is the effect on the quantity demanded?

Answer Options

A. Increase by 10%
Correct Answer B. Decrease by 10%
C. Increase by 5%
D. Decrease by 5%
Correct Answer
B
Correct Option:
Decrease by 10%

About This Question

This is Post Utme Bsu 2025 Economics Question 37. It is one of the objective questions from the 2025 Post Utme Bsu Economics examination.

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