Post Utme Greenfield University 2019 Economics Question 3

Practice objective / multiple choice question 3 from the 2019 Post Utme Greenfield University Economics examination.

Post Utme Greenfield University 2019 Economics Objective / Multiple Choice
Question 3 POST_UTME_GREENFIELD_UNIVERSITY • 2019 • ECONOMICS • objective
Post Utme Greenfield University 2019 Economics Question 3 diagram

A government imposes a tax on a good to reduce its consumption. What is the effect of this tax on the equilibrium price and quantity of the good?

Answer Options

Correct Answer A. The equilibrium price increases, and the equilibrium quantity decreases.
B. The equilibrium price decreases, and the equilibrium quantity increases.
C. The equilibrium price remains cons\tant, and the equilibrium quantity increases.
D. The equilibrium price remains cons\tant, and the equilibrium quantity decreases.
Correct Answer
A
Correct Option:
The equilibrium price increases, and the equilibrium quantity decreases.

About This Question

This is Post Utme Greenfield University 2019 Economics Question 3. It is one of the objective questions from the 2019 Post Utme Greenfield University Economics examination.

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