Post Utme Delsu 2023 Economics Question 24

Practice objective / multiple choice question 24 from the 2023 Post Utme Delsu Economics examination.

Post Utme Delsu 2023 Economics Objective / Multiple Choice
Question 24 POST_UTME_DELSU • 2023 • ECONOMICS • objective

A government imposes a tax of 10% on a good. If the demand for the good is given by Q = 100 - 2P and the price elasticity of demand is -2, what is the effect on the government's revenue?

Answer Options

Correct Answer A. Increase by 20%
B. Decrease by 10%
C. Increase by 10%
D. Decrease by 20%
Correct Answer
A
Correct Option:
Increase by 20%

About This Question

This is Post Utme Delsu 2023 Economics Question 24. It is one of the objective questions from the 2023 Post Utme Delsu Economics examination.

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