Post Utme Futo 2019 Economics Question 24

Practice objective / multiple choice question 24 from the 2019 Post Utme Futo Economics examination.

Post Utme Futo 2019 Economics Objective / Multiple Choice
Question 24 POST_UTME_FUTO • 2019 • ECONOMICS • objective

The government imposes a tax of ₦50 per unit on a consumer's good. If the consumer's utility function is given by U = 2X + 3Y, where U is utility, X is quantity of good X and Y is quantity of good Y, and the prices of good X and good Y are ₦100 and ₦200 respectively, find the new utility function and the optimal values of X and Y.

Answer Options

A. U = 2X + 3Y - 50, X = 10, Y = 20
B. U = 2X + 3Y - 100, X = 20, Y = 10
Correct Answer C. U = 2X + 3Y - 150, X = 15, Y = 15
D. U = 2X + 3Y - 200, X = 25, Y = 5
Correct Answer
C
Correct Option:
U = 2X + 3Y - 150, X = 15, Y = 15

About This Question

This is Post Utme Futo 2019 Economics Question 24. It is one of the objective questions from the 2019 Post Utme Futo Economics examination.

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