Post Utme Crawford University 2020 Economics Question 24

Practice objective / multiple choice question 24 from the 2020 Post Utme Crawford University Economics examination.

Post Utme Crawford University 2020 Economics Objective / Multiple Choice
Question 24 POST_UTME_CRAWFORD_UNIVERSITY • 2020 • ECONOMICS • objective

A government is considering a tax on a particular good. If the tax increases the price of the good by 20%, and the demand curve is inelastic, what will be the effect on the government's revenue?

Answer Options

Correct Answer A. The government's revenue will increase.
B. The government's revenue will decrease.
C. The government's revenue will remain the same.
D. The government's revenue will increase by 20%.
Correct Answer
A
Correct Option:
The government's revenue will increase.

About This Question

This is Post Utme Crawford University 2020 Economics Question 24. It is one of the objective questions from the 2020 Post Utme Crawford University Economics examination.

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