Post Utme Delsu 2017 Economics Question 34

Practice objective / multiple choice question 34 from the 2017 Post Utme Delsu Economics examination.

Post Utme Delsu 2017 Economics Objective / Multiple Choice
Question 34 POST_UTME_DELSU • 2017 • ECONOMICS • objective
Post Utme Delsu 2017 Economics Question 34 diagram

A government imposes a tax on a good, cau\sing the supply curve to shift to the left. What is the effect of the tax on the equilibrium price and quantity of the good?

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 remains unchanged and the equilibrium quantity decreases.
D. The equilibrium price increases and the equilibrium quantity remains unchanged.
Correct Answer
A
Correct Option:
The equilibrium price increases and the equilibrium quantity decreases.

About This Question

This is Post Utme Delsu 2017 Economics Question 34. It is one of the objective questions from the 2017 Post Utme Delsu Economics examination.

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