Post Utme Delsu 2019 Economics Question 9

Practice objective / multiple choice question 9 from the 2019 Post Utme Delsu Economics examination.

Post Utme Delsu 2019 Economics Objective / Multiple Choice
Question 9 POST_UTME_DELSU • 2019 • ECONOMICS • objective

A government is considering a tax on a particular good. The demand for the good is given by Qd = 100 - 2P, and the supply is given by Qs = 2P. U\sing the concept of elasticity, determine the effect of the tax on the price and quantity of the good.

Answer Options

Correct Answer A. The price will increase, and the quantity will decrease.
B. The price will decrease, and the quantity will increase.
C. The price will remain unchanged, and the quantity will remain unchanged.
D. The price will increase, and the quantity will increase.
Correct Answer
A
Correct Option:
The price will increase, and the quantity will decrease.

About This Question

This is Post Utme Delsu 2019 Economics Question 9. It is one of the objective questions from the 2019 Post Utme Delsu Economics examination.

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