Post Utme Crawford University 2024 Economics Question 27

Practice objective / multiple choice question 27 from the 2024 Post Utme Crawford University Economics examination.

Post Utme Crawford University 2024 Economics Objective / Multiple Choice
Question 27 POST_UTME_CRAWFORD_UNIVERSITY • 2024 • ECONOMICS • objective

A government imposes a tax on a commodity, which leads to a decrease in its supply. What is the effect of this tax on the equilibrium price and quantity of the commodity?

Answer Options

Correct Answer A. The equilibrium price increases, and the equilibrium quantity decreases.
B. The equilibrium price decreases, and the equilibrium quantity increases.
C. The equilibrium price increases, and the equilibrium quantity increases.
D. The equilibrium price decreases, and the equilibrium quantity decreases.
Correct Answer
A
Correct Option:
The equilibrium price increases, and the equilibrium quantity decreases.

About This Question

This is Post Utme Crawford University 2024 Economics Question 27. It is one of the objective questions from the 2024 Post Utme Crawford University Economics examination.

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