Post Utme Elizade University 2022 Economics Question 8

Practice objective / multiple choice question 8 from the 2022 Post Utme Elizade University Economics examination.

Post Utme Elizade University 2022 Economics Objective / Multiple Choice
Question 8 POST_UTME_ELIZADE_UNIVERSITY • 2022 • ECONOMICS • objective

A government is considering implementing a tax on a particular good. The supply function for the good is given by Q = 100 + 2P, where Q is the quantity supplied and P is the price. The demand function for the good is given by Q = 100 - 2P. If the government imposes a tax of ₦10 per unit on the good, what will be the new equilibrium price and quantity?

Answer Options

Correct Answer A. Price = ₦60, Quantity = 80 units
B. Price = ₦70, Quantity = 90 units
C. Price = ₦80, Quantity = 100 units
D. Price = ₦90, Quantity = 110 units
Correct Answer
A
Correct Option:
Price = ₦60, Quantity = 80 units

About This Question

This is Post Utme Elizade University 2022 Economics Question 8. It is one of the objective questions from the 2022 Post Utme Elizade University Economics examination.

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