Post Utme Futa 2022 Economics Question 19

Practice objective / multiple choice question 19 from the 2022 Post Utme Futa Economics examination.

Post Utme Futa 2022 Economics Objective / Multiple Choice
Question 19 POST_UTME_FUTA • 2022 • ECONOMICS • objective

The government of Nigeria has introduced a new tax on luxury goods. The tax is ₦1,000 per unit of the good. If the demand for the good is given by the equation Q = 100 - 2P, where Q is the quantity demanded and P is the price, what is the effect of the tax on the price of the good?

Answer Options

Correct Answer A. The price of the good will increase
B. The price of the good will decrease
C. The price of the good will remain the same
D. The effect on the price of the good is uncertain
Correct Answer
A
Correct Option:
The price of the good will increase

About This Question

This is Post Utme Futa 2022 Economics Question 19. It is one of the objective questions from the 2022 Post Utme Futa Economics examination.

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