Post Utme Igbinedion University 2021 Economics Question 4

Practice objective / multiple choice question 4 from the 2021 Post Utme Igbinedion University Economics examination.

Post Utme Igbinedion University 2021 Economics Objective / Multiple Choice
Question 4 POST_UTME_IGBINEDION_UNIVERSITY • 2021 • ECONOMICS • objective

A government is considering a tax on a particular good. The demand for the good is given by Q = 100 - 2P, and the supply of the good is given by Q = 2P. What is the optimal tax rate?

Answer Options

A. 10%
Correct Answer B. 20%
C. 30%
D. 40%
Correct Answer
B
Correct Option:
20%

About This Question

This is Post Utme Igbinedion University 2021 Economics Question 4. It is one of the objective questions from the 2021 Post Utme Igbinedion University Economics examination.

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