Post Utme Coal City University 2018 Economics Question 16

Practice objective / multiple choice question 16 from the 2018 Post Utme Coal City University Economics examination.

Post Utme Coal City University 2018 Economics Objective / Multiple Choice
Question 16 POST_UTME_COAL_CITY_UNIVERSITY • 2018 • ECONOMICS • objective

A government imposes a tax on a commodity to reduce its consumption. If the demand for the commodity is inelastic, what will be the effect on the government's revenue?

Answer Options

A. The government's revenue will increase.
Correct Answer B. The government's revenue will decrease.
C. The government's revenue will remain the same.
D. The effect on the government's revenue is uncertain.
Correct Answer
B
Correct Option:
The government's revenue will decrease.

About This Question

This is Post Utme Coal City University 2018 Economics Question 16. It is one of the objective questions from the 2018 Post Utme Coal City University Economics examination.

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