Post Utme Caleb University 2020 Economics Question 17

Practice objective / multiple choice question 17 from the 2020 Post Utme Caleb University Economics examination.

Post Utme Caleb University 2020 Economics Objective / Multiple Choice
Question 17 POST_UTME_CALEB_UNIVERSITY • 2020 • ECONOMICS • objective

A government imposes a tax on a firm's output. If the firm's supply curve shifts from S1 to S2, what is the effect on the equilibrium price and quantity?

Answer Options

A. Price increases and quantity decreases
B. Price decreases and quantity increases
C. Price increases and quantity increases
Correct Answer D. Price decreases and quantity decreases
Correct Answer
D
Correct Option:
Price decreases and quantity decreases

About This Question

This is Post Utme Caleb University 2020 Economics Question 17. It is one of the objective questions from the 2020 Post Utme Caleb University Economics examination.

View More Post Utme Caleb University 2020 Economics Questions More Post Utme Caleb University Practice Questions Back to Questions

Master the Exam!

You've seen a preview, but there are thousands more questions plus AI tutor to break down complex solutions.

Unlock Full Access Available for Android & Windows
Chat with Support