Post Utme Esut 2019 Economics Question 11

Practice objective / multiple choice question 11 from the 2019 Post Utme Esut Economics examination.

Post Utme Esut 2019 Economics Objective / Multiple Choice
Question 11 POST_UTME_ESUT • 2019 • ECONOMICS • objective

A government plans to increase the price of a commodity by 15% to reduce its consumption. However, the demand for the commodity is inelastic. What will be the effect of this price increase on the government's revenue?

Answer Options

A. The government's revenue will increase by 15%
B. The government's revenue will decrease by 15%
Correct Answer C. The government's revenue will remain the same
D. The government's revenue will increase by 20%
Correct Answer
C
Correct Option:
The government's revenue will remain the same

About This Question

This is Post Utme Esut 2019 Economics Question 11. It is one of the objective questions from the 2019 Post Utme Esut Economics examination.

View More Post Utme Esut 2019 Economics Questions More Post Utme Esut Practice Questions Back to Questions

Master the Exam!

You've seen a preview, but there are thousands more questions plus AI tutor to break down complex solutions.

Unlock Full Access Available for Android & Windows
Chat with Support