Post Utme Elizade University 2017 Economics Question 31

Practice objective / multiple choice question 31 from the 2017 Post Utme Elizade University Economics examination.

Post Utme Elizade University 2017 Economics Objective / Multiple Choice
Question 31 POST_UTME_ELIZADE_UNIVERSITY • 2017 • ECONOMICS • objective

Consider a small open economy with a perfectly competitive market for a particular good. The demand for the good is given by the inverse demand function \( p = 100 - 2q \), where (p) is the price and (q) is the quantity demanded. The supply of the good is given by the inverse supply function \( p = 50 + 2q \). Assuming that the economy is initially in equilibrium, what is the change in the equilibrium quantity demanded of the good if the government imposes a tax of ₦10 per unit on the good?

Answer Options

A. 20 units
Correct Answer B. 30 units
C. 40 units
D. 50 units
Correct Answer
B
Correct Option:
30 units

About This Question

This is Post Utme Elizade University 2017 Economics Question 31. It is one of the objective questions from the 2017 Post Utme Elizade University Economics examination.

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